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If you’re looking for some growth shares to add to your portfolio next week, then you may want to look at the ones below.

Here’s what you need to know about these highly rated ASX growth shares:

Allkem Ltd (ASX: AKE)

The first ASX growth share for investors to consider is this lithium miner.

Allkem was formed after two leading lithium miners, Galaxy Resources and Orocobre, merged last year to create a top five global lithium miner. It owns a number of operations across the world including Olaroz, James Bay, Mt Cattlin, and the Sal de Vida brine project.

Management believes that these operations provide it with the opportunity to maintain a 10% share of global lithium production in the future. This positions the company perfectly to profit from the significant and growing demand for the battery making ingredient.

Morgans is very positive on lithium prices and continues to rate Allkem as its top pick in the industry. It currently has an add rating and $16.72 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX growth share to consider buying is Life360. It operates in the digital consumer subscription services market, with a focus on products and services for digitally native families.

The company’s key offering is the popular Life360 app, which offers families features such as communications, driver safety, and location sharing. In addition, the company has expanded into the wearables and items tracking market via the acquisitions of Jiobit and Tile. This gives Life360 significant cross-selling opportunities to its large subscriber base of over 30 million active users.

The team at Bell Potter is very positive on Life360 and has a buy rating and $7.50 price target on its shares.

The post 2 ASX growth shares that analysts love appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Is the Allkem share price dirt cheap? Broker tips 70% upside for investors
• 5 things to watch on the ASX 200 on Friday
• 3 fantastic ASX tech shares experts say are buys
• The Life360 share price has rocketed 69% in a month. Is it too late to buy?

Motley Fool contributor James Mickleboro has positions in Allkem Limited and Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. 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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If you’re looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at? Listed below are three quality ETFs that could be worth getting better acquainted with. Here’s what you need to know:

iShares Global Consumer Staples ETF (ASX: IXI)

If you’re looking for low risk options for your portfolio, then the iShares Global Consumer Staples ETF could be worth considering. That’s because this fund gives investors exposure to many of the world’s largest global consumer staples companies such as Coca-Cola, Nestle, PepsiCo, Procter & Gamble, Unilever, and Walmart. As demand for these types of products is relatively consistent whatever the economy throws at them, this could make it a good option in the current environment.

iShares S&P 500 ETF (ASX: IVV)

Investors that are looking for instant diversification might want to consider the iShares S&P 500 ETF. That’s because this popular ETF gives investors access to a massive 500 of the top listed U.S. companies. Among the companies that you’ll be owning a slice of include Amazon, Apple, Disney, Facebook, JP Morgan, Johnson & Johnson, Microsoft, Tesla, and Visa. Given the positive long term outlooks of these companies, this ETF looks well-placed to generate solid returns over the long run.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Finally, if you’re interested in tech shares but already have exposure to the FAANGs, then you might want to look at the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors access to companies with exposure to the growing video game market. Among the shares included in the fund are hardware giant Nvidia and game developers Roblox, Take-Two, and Electronic Arts. VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports.

The post 3 quality ETFs for ASX investors in July appeared first on The Motley Fool Australia.

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More reading

• 3 high quality ETFs for ASX investors to buy today
• Why I think these 2 ASX shares are steals
• Has the iShares Consumer Staples ETF protected investors’ portfolios in 2022?
• Here are 3 ETFs for ASX investors to buy in FY23
• Here are 2 top ETFs for ASX investors next week

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 positions in and has recommended iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and iShares Trust – iShares Core S&P 500 ETF. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Ethereum (CRYPTO: ETH), or rather, the Ethereum ecosystem’s Ether token, is the second-largest cryptocurrency on the market. Ether prices soared all the way to $4,892 in November 2021, but have come back down to roughly $1,500 per coin today.

Inflation concerns and a lack of robust cryptocurrency regulations have weighed on the crypto market as a whole, and on high-flying market darlings like Ether in particular.

However, the crypto market has shown some signs of stabilization and recovery in recent weeks. Ether’s price has gained 67% from its three-month lows, and many investors are wondering how high this digital asset can go from here. For example, will it ever be worth $10,000 per coin?

Market cycles and volatility

First of all, some people believe that cryptocurrencies are a fad with no inherent value at all. I’m not here to change your mind about the fundamentals of the crypto market, so if you fall in this group, you’ll probably be happier reading up on the best stock ideas on the market instead. It’s all right — cryptocurrencies aren’t every investor’s cup of Lapsang souchong.

But among those who see real-world value in ultra-secure digital ledgers with extra features such as smart contracts and decentralized management, Ethereum is expected to bounce back from this downturn.

The crypto market has been highly cyclical so far, and 2022 looks a lot like the correction in 2018. Back then, Ether had never traded above $1,450 per coin and investors were wondering whether the cryptocurrency would get back up to the $1,000 level.

So the 52-week lows nowadays are comparable to the all-time highs of the previous upswing, and the beat goes on. But things are different this time because the cryptocurrency phenomenon is growing up quickly.

What may have looked like a forgettable fad four years ago is now powering decentralized finance apps, innovative loan and insurance services, online games, and international money transfers.

Regulators around the world are taking cryptocurrencies much more seriously today, and fellow sector giant Bitcoin now serves as an official currency in two countries.

Can Ethereum get back on its feet again?

The cryptocurrency market as a whole should achieve a full recovery in a year or two, followed by continued long-term growth. Again, I’m basing my analysis on the idea that developers will keep producing crypto-based products, apps, and services that consumers and businesses find useful in the real world.

As a veteran of the sector, with unique features and an unmatched army of app developers, Ethereum is poised to lead that surge from the front. Don’t forget that this crypto network is about to roll out the most important technology upgrade in its history, erasing the speed and efficiency advantages that some Ethereum rivals are boasting of today. This old dog is happy to learn new tricks.

In order to reach a price of $10,000 per Ether coin, the cryptocurrency has to double the peak prices seen in November. The target price is nearly seven times the current level. That sounds like a lot, but the volatile crypto market can deliver moves of that epic magnitude in a hurry. For example, Ether prices rose more than 20-fold from March 2020 to March 2022.

It’s a question of time

There are no guarantees that the next recovery will look like that, of course. Let’s just say that I wouldn’t be surprised if Ether multiplied its market value by seven or more amid a general crypto market recovery, with its own platform upgrade providing more fuel for the fire.

All the components of this potential future are in place, and the bullish market move is just a matter of time — as long as you agree that cryptocurrencies and blockchain networks have a useful future.

Under these circumstances, Ethereum looks almost certain to reach the $10,000 pricing milestone, and then keep going up in the long run. In the process, the market cap will pass the trillion-dollar mark when Ether prices reach $8,221 per coin. As I see it, these landmark metrics are coming, and probably within the next year or two.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Can Ethereum reach $10,000? appeared first on The Motley Fool Australia.

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More reading

• Will Ethereum and Bitcoin see the ‘flippening’ in 2022?
• Why Bitcoin, Ethereum, and Dogecoin are falling today
• Tesla sells 75% of Bitcoin holdings. Here’s why Elon Musk is unloading
• Here’s why the Bitcoin and Dogecoin prices are rocketing
• Ethereum surges, but Ethereum classic up much more on merge anticipation

Motley Fool contributor Anders Bylund has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Breville Group Ltd (ASX: BRG)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $25.00 price target on this appliance manufacturer’s shares. The broker believes that the pullback in the Breville share price has created a buying opportunity for investors. Especially given the company’s international expansion and the broker’s belief that it is well-placed to achieve its earnings estimates through to FY 2024. The Breville share price ended the week at $20.34.

Santos Ltd (ASX: STO)

A note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed their price target on this energy producer’s shares to $10.05. Although Macquarie was disappointed with Santos’ production and revenue in the last quarter, it was pleased with its free cash flow generation. In light of the latter, the broker remains positive and sees value in its shares at the current level. The Santos share price was fetching $7.03 at Friday’s close.

Woolworths Group Ltd (ASX: WOW)

Analysts at Goldman Sachs have retained their conviction buy rating and $40.50 price target on this retail giant’s shares. This follows news that the company intends to acquire out of home media company Shopper Media Group for $150 million. Goldman believes the transaction is strategically in line with its view of the retail media business being the next material growth lever for Woolworths. The Woolworths share price ended the week at $37.25.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Analysts rate these ASX 200 blue chip shares as buys
• 2 excellent ASX 200 shares to buy right now according to experts
• Why Leo Lithium, Rio Tinto, Santos, and Woodside shares are dropping today
• Record-breaking: Santos share price slips despite 85% jump in half-year revenue
• ‘Not enough’: Could Europe’s gas woes bolster ASX 200 energy shares?

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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Looking for dividends shares to buy for your income portfolio this month? Then take a look at the two listed below which brokers currently rate as buys.

Here’s what you need to know about them:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend share to look at is Dicker Data. It is a leading technology hardware, software, and cloud distributor.

It has been growing at a solid rate for a decade and shows no signs of stopping. For example, during the first quarter, the company reported a 50.5% increase in revenue to $673.6 million and a 22.7% lift in profit before tax to $23.8 million.

Last week, the team at Morgan Stanley retained its overweight rating and $16.00 price target on the company’s shares.

In addition, the broker reaffirmed its forecast for fully franked dividends per share of 41.4 cents in FY 2022 and 48.5 cents in FY 2023. Based on the current Dicker Data share price of $13.04, this will mean yields of 3.2% and 3.7%, respectively.

Westpac Banking Corp (ASX: WBC)

Another dividend share that could be in the buy zone is Westpac.

The team at Citi are positive on Australia’s oldest bank and are forecasting a growing stream of dividends in the coming years.

The broker is currently forecasting fully franked dividend of $1.23 in FY 2022, $1.53 in FY 2023, and then $1.85 in FY 2024. Based on the current Westpac share price of $21.07, if Citi is on the money with these forecasts, it will mean generous yields of 5.8%, 7.25%, and 8.8%, respectively.

But it gets better. The broker sees significant upside for the bank’s shares, with its buy rating and $29.00 price target. This price target is almost 40% higher than where Westpac’s shares currently trade.

The post Brokers rate these ASX dividend shares as buys appeared first on The Motley Fool Australia.

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More reading

• Own Westpac shares? Why the major bank could soon make a crypto splash
• Why did the ANZ share price smash the other ASX 200 banks today?
• RBA in the spotlight; and Westpac hikes fixed rates. Scott Phillips on Nine’s Late News
• How high will the RBA hike rates in 2022? Here’s what the ASX 200 banks are forecasting
• This is what analysts are forecasting for the Westpac dividend through to FY24

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 Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

When analyzing the quality of companies, investors often focus on financial metrics such as earnings growth or the strength of the balance sheet. And while financial metrics are certainly an integral part of any investment analysis, investors can benefit by looking at nontraditional statistics to find high-quality businesses.

Two areas that are often indicators of an excellent company are employee and customer satisfaction. Great businesses aim to maximize value for all stakeholders, not just the shareholders.

Two metrics investors can use to measure customer and employee loyalty are net promoter scores and Glassdoor ratings.

Net promoter scores

The net promoter score (NPS) is a measurement of how likely a brand’s customers are to promote it to others. It’s produced by conducting a simple survey asking how likely a customer is to recommend the product or service to a friend.

Not every company will take the time to conduct these surveys, but those serious about their brand image will hire outside marketing firms to survey their customers on an annual or semi-annual basis. 

The NPS is derived by subtracting the percentage of detractors (not likely to recommend the product) from the percentage of promoters (very likely to recommend). The resulting score ranges from negative 100 to 100.

A negative score is a big red flag as that means the majority of customers would not recommend the product, while a score of greater than 60 is generally considered the mark of a highly regarded brand.

Marketing firm Invesp estimates word-of-mouth promotion accounts for $6 trillion in annual consumer spending and is five times more effective than paid marketing. So, a high NPS score not only indicates customers love a company’s products, but also means the business likely needs to spend less on marketing to drive sales.

To find a company’s NPS, you’ll have to do some digging. The company’s investor relations page is a good place to start, as businesses with high scores will often share them in presentations or shareholder letters.

There are also companies like Comparably, which conducts its own independent NPS surveys on hundreds of major brands.

Footwear apparel company Allbirds (NASDAQ: BIRD) shared its impressive net promoter score of 86 in its most recent investor presentation. The customer loyalty for this brand is best in class, which is why the company reports over 50% of its revenue comes from repeat customers.

The strength of a company’s brand can be difficult to measure by simply looking at financials. But fortunately, net promoter scores offer investors an alternative metric to gauge customer sentiment.

Glassdoor ratings

Employee happiness is another great indicator of a strong business.

Glassdoor provides incredibly valuable insights into a company’s employee sentiment. You can read employee reviews, see how likely they are to recommend their employer to a friend, and even find the percentage of employees who approve of the CEO.

This is a wealth of data that many investors miss by exclusively looking at financial statements during their research. Many of the top companies in the world, such as Alphabet (NASDAQ: GOOG) and Amazon.com (NASDAQ: AMZN), have remained industry leaders for years because of their ability to attract top talent to their employee ranks.

In 2021, Gartner (NYSE: IT) found that 48% of companies in a survey had serious concerns about mass turnover. Employee turnover is not only extremely costly, but it can also be highly disruptive to the company’s execution.

Thus, positive Glassdoor reviews and ratings can give investors confidence that a business is both attracting and, more importantly, retaining top talent.

Zoom Video Communications (NASDAQ: ZM) is a perfect example of a business with incredibly high Glassdoor metrics. Some 88% of employees say they would recommend the company to a friend, and a staggering 94% of employees approve of CEO Eric Yuan.

While the company’s stock has taken a beating due to the recent risk-off sentiment in the market, the Glassdoor reviews show a strong company beloved by its employees.

Outside-the-box thinking

Long-term investors can give themselves an edge by thinking outside the box when conducting their research. Net promoter scores and Glassdoor reviews are two ways you can gain unique insights into the strength of a business in pursuit of market-beating returns.

Just remember, as with traditional metrics like those found on the balance sheet or income statement, it’s important to consider the whole picture of a business and not make investment decisions based on a single attribute or number.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 important investing metrics you won’t find on a financial statement appeared first on The Motley Fool Australia.

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More reading

• Amazon is bowing to regulators. Here’s what it means for shareholders
• Amazon earnings: What to watch on July 28
• What’s in store for the BetaShares NASDAQ 100 ETF in the next 12 months?
• Down 23%, should investors buy Alphabet before its stock split?
• Better advertising stock: Alphabet vs. Amazon

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Zoom Video Communications. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Wesfarmers Ltd (ASX: WES) share price has risen by 11% over the last month. After a quick rise in a short amount of time, is the business worth owning for income?

Dividends can be an attractive way to benefit from the net profit after tax (NPAT) and cash flow that is generated by a business each day.

For readers that aren’t sure what Wesfarmers does, it’s the parent company of many recognisable retail names in Australia, including Bunnings, Kmart, Officeworks, Catch, and Target.

But, simply being a large S&P/ASX 200 Index (ASX: XJO) share that pays a dividend doesn’t automatically mean Wesfarmers shares are a buy.

Let’s have a look at the recent performance by Wesfarmers.

Last three dividends

The latest dividend from Wesfarmers was the interim dividend for the first half of FY22.

It decided to decrease the half-year dividend by 9.1% to 80 cents per share. This came after a 12.7% fall in NPAT to $1.2 billion and a 29.8% decline in the operating cash flow to $1.56 billion.

However, in the FY21 result, it increased the full-year dividend by 17.1% to $1.78 per share. This was funded by a 16.2% increase in underlying earnings per share (EPS) to $2.14.

If the earnings rise, then Wesfarmers can fund a higher dividend for shareholders.

The company says that “Wesfarmers’ primary objective is to provide a satisfactory return to shareholders”.

How will Wesfarmers drive its profit higher?

Wesfarmers says it believes it’s only possible to grow its profit over the long-term by:

• Anticipating the needs of customers and delivering competitive goods and services
• Looking after team members and providing a safe, fulfilling work environment
• Engaging fairly with suppliers and sourcing ethically and sustainably
• Supporting the communities where it operates
• Taking care of the environment
• Acting with integrity and honesty in all its dealings

Wesfarmers is looking to invest in a number of different areas of its business to grow earnings into the future.

I think Bunnings can continue to generate good earnings, even during this difficult period of inflation and rising interest rates.

What’s most interesting to me is the new Wesfarmers Health division. It started this after acquiring Australian Pharmaceutical Industries (API), which includes Priceline, Soul Pattinson Chemists, Clear Skincare Clinics and more.

There could be useful tailwinds to drive Wesfarmers Health earnings higher and also be helpful for Wesfarmers shares.

Wesfarmers pointed out that health is an important, large sector. The population of Aussies aged 65 and over is expected to double to 8.9 million by 2061. Customers are reportedly becoming more interested in health and wellness, with an increased focus on preventative health measures and treatment.

Data and digital can “transform” customer journeys in healthcare, improving health outcomes.

Wesfarmers said:

With strong fundamentals and the ability to leverage group capabilities, Wesfarmers Health can deliver superior returns over the long term.

It’ll be interesting to see what Wesfarmers does in healthcare and what other acquisitions it makes.

Wesfarmers dividend expectations

In FY22, according to CMC Markets, Wesfarmers is expected to pay an annual dividend of $1.66 per share. That translates into a grossed-up dividend yield of 5%.

In FY24, the projection for the dividend is $1.88 per share. That translates into a potential grossed-up dividend yield of 5.6%.

The near-term dividends seem reasonably attractive. However, I’m even more interested in Wesfarmers because of its diversification and expanding portfolio in areas with growth. For example, not only has it recently invested in healthcare, but it’s also working on a lithium mining project.

I think it would be a solid long-term pick at the current Wesfarmers share price of $47.53.

The post Should investors buy Wesfarmers shares for dividends? appeared first on The Motley Fool Australia.

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More reading

• Can ASX dividend shares deliver during earnings season?
• Could ASX earnings season be ‘a lot better than what the market is positioned for’?
• ASX 200 retail shares rise as consumer confidence improves
• ‘High quality’: Why Wesfarmers shares are a buy in this broker’s books
• Top ASX dividend shares to buy in July 2022

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers 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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With interest rates rising, many experts are urging investors to buy ASX shares that can maintain revenue through tough times.

One such sector is health, where the logic is that Australians will still need to treat their illnesses and injuries even if the economy is depressed.

Medical imaging provider Capitol Health Ltd (ASX: CAJ) is one company that’s seen its share price drop significantly, to the tune of 32% so far in 2022.

Quality business that’s too cheap

For Shaw and Partners portfolio manager James Gerrish, this dip has opened up a nice buying opportunity.

“We continue to like Capitol Health on valuation grounds,” he said in a Market Matters Q&A.

“We think it’s simply too cheap for the quality of their business.”

While it is not widely covered by fund managers, on CMC Markets, three of the four surveyed analysts rate Capitol Health shares as a buy.

Gerrish likes the revenue profile of the company, considering the economic downturn we’re heading into.

“It’s… important to note that in a recessionary environment, 80%+ of Capitol Health’s spending is Medicare based, providing downside protection alongside a balance sheet that has very minimal debt.”

The ASX share also pays out a decent income, currently handing out a 3.7% dividend yield.

Healthcare is the hot industry right now

Switzer Financial Group director Paul Rickard noted last week that the health sector was enjoying a nice comeback in July after plunging this year.

The S&P/ASX 200 Health Care (ASX: XHJ) index is indeed up a whopping 9% this month, after dropping 12 % from January to June.

Rickard attributed this to recent weakness in the dominant banking and mining sectors, as well as a weaker Australian dollar.

“Banks, there are question marks about whether high interest rates will really impact profits and bad debts in the long term,” he said on Switzer TV Investing.

“In the resources sector, people are still worried about commodity prices and the ‘R’ word — recession — and what that might do.”

Financial results season is another consideration, Rickard added.

“We’re coming into reporting season, and healthcare companies have traditionally done really well in reporting season.”

The post ‘Simply too cheap’ ASX share that could plough ahead in a recession: expert appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs names 2 ASX shares as conviction buys
• 3 steps you’ll regret not taking during this bear market
• Running out of cash in retirement? 4 better options than taking on debt
• How might China’s $6b Mineral Resources Group impact the iron ore price?
• Analysts name 2 ASX dividend shares to buy next week

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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Looking for new ASX shares to buy? If you are, then you may want to check out the two listed below that are highly rated by the team at Goldman Sachs.

In fact, its analysts rate them so highly that they have them on their conviction list. Here’s what you need to know:

Iluka Resources Limited (ASX: ILU)

Goldman Sachs is a big fan of this mineral sands and rare earths company and has named it as an ASX share to buy.

Last week the broker retained its conviction buy rating and lifted its price target to $14.40. This implies potential upside of over 40% for investors over the next 12 months.

Goldman likes Iluka due to its attractive valuation and “compelling Mineral Sands and Rare Earth growth potential.” It commented:

Trading at ~0.6x NAV (A$15.04/sh). We think the market is ascribing only some value to ILU’s Wimmera and Eneabba RE projects and the high grade zircon Balranald development project. We think ILU is undervalued (on just c.3.5x EBITDA NTM) vs. key rare earth (c.13x) and mineral sands/pigment (c.5x) industry peers.

Compelling Mineral Sands and Rare Earth growth potential: We are positive on ILU’s project pipeline and forecast >40% production growth in mineral sands volumes, c.18ktpa of Rare Earths (~3.5-4ktpa of high value NdPr).

Lifestyle Communities Limited (ASX: LIC)

Another ASX share that Goldman rates highly is retirement communities company Lifestyle Communities.

Last week Goldman Sachs retained its conviction buy rating with a slightly trimmed price target of $24.30. This implies potential upside of over 50% for investors over the next 12 months.

Its analysts believe the company is well-placed to benefit from Australia’s ageing population and structural growth in demand for land lease. The broker commented:

LIC is well-placed to provide supply to a growing cohort of over 50’s with limited savings outside the family home seeking to free up equity. In the near term, we see potential modest house price declines offset by LIC’s favourable pipeline and inventory position, coupled with a strong value proposition for incoming home-owners, with the cost of an LIC home currently sitting at c.65% of the median house price (vs. company feasibility of up to 80%), thus providing pricing support.

The post Goldman Sachs names 2 ASX shares as conviction buys appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Here are the top 10 ASX shares today
• Why Iluka, JB Hi-Fi, Megaport, and Zip shares are racing higher
• Iluka share price leaps 6% on increased mineral sands production
• Can the Lifestyle Communities share price recover in FY23?

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

If your portfolio is teetering amid a turbulent bear market — as pretty much everyone’s is at the moment — you need a plan to come out ahead, and you need to act on it.

Fruitful investments made today could have the benefit of a very long run-up once the bear market subsides, and mistakes made out of fear could have consequences for a long time, too. 

With those consequences in mind, let’s look at three quick steps you can take to make the best out of the market as it is right now. 

1. Build on your high-confidence positions

The first thing to do when the market gets rough is to use it as an opportunity to gobble up shares of companies in your portfolio you think will continue to appreciate in value for a long time, even if their stock price is falling in the short term.

Think about a business like Pfizer (NYSE: PFE), which has seen its shares fall by 11% so far this year despite widespread successes with hit products like Comirnaty, its coronavirus vaccine, and Paxlovid, its antiviral pill for COVID.

If you have a position in it and the recent drop scares you off from adding more, you’re missing out on a sale — assuming that you actually believe it’ll eventually recover. 

So, especially for an investment like Pfizer, which is steadily growing its sales and net income, it makes more sense to be buying shares than sitting on the sidelines. The real trick is to keep investing even when high-confidence picks get rocked.

And as long as your investing thesis is still as valid as when you started buying the shares, you’ll be getting the biggest discounts when things look like they’re crashing the hardest. Just be aware that you might need to wait a few years before your spending starts to pay off with outsized returns.

2. Set up a dividend reinvestment plan

Another great action to take to weather the bear market is to enable a dividend reinvestment plan (DRIP) for your dividend-paying stocks. Take the returns from AbbVie (NYSE: ABBV) over the last 10 years, for example:

ABBV data by YCharts

As the chart shows, the price returns from AbbVie shares are nowhere near the total return that’s possible by retaining and reinvesting each of its quarterly dividend payments. When you reinvest your dividends instead of accepting them in cash and spending them elsewhere, your position compounds in value much faster.

And when share prices dip during a bear market, the stock’s dividend yield increases accordingly, meaning that if you aren’t reinvesting your dividends at that moment, you’re missing out on securing some higher-yield shares for the remaining years of your long hold. 

Plus, biopharma companies like AbbVie often have significant cash flows that are enough to keep hiking their dividend even when there’s a bear market, recession, or other economic issues.

That means if you don’t set your shares to reinvest their dividends now, then by the time the bear market is over, you might have missed out on quite a bit of compounding at a very attractive rate. And it would be a shame to lose out on this bonus that’s there for the taking. 

3. Talk yourself out of panic selling (or buying)

Perhaps the most important step to take during a bear market or market crash is to take a deep breath and talk yourself out of selling your shares in a panic. (It’s also helpful to avoid frantically buying the dip on stocks you aren’t fully confident in but seem priced like a bargain.)

Selling your shares locks in whatever losses you’ve sustained, regardless of whether there is a valid business reason for the underlying company to experience additional headwinds. 

In the current market, it’s true that there are quite a few economic headwinds making things difficult, but it’s also true that buying high and selling low is a losing strategy.

Eventually, the market will recover, and when it does, the stock you’re itching to sell could easily come back with a vengeance. Therefore, when you get tempted to pull the plug on some of your investments, you’ll regret not stepping back, especially if you don’t have a need for the money you invested anytime soon.

When I get tempted to sell due to market chaos, I find that it’s often helpful to simply close my browser tab displaying my portfolio and take a walk outside. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 steps you’ll regret not taking during this bear market appeared first on The Motley Fool Australia.

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More reading

• Running out of cash in retirement? 4 better options than taking on debt
• How might China’s $6b Mineral Resources Group impact the iron ore price?
• Analysts name 2 ASX dividend shares to buy next week
• Have ASX shares bottomed yet?
• Analysts rate these ASX 200 blue chip shares as buys

Motley Fool contributor Alex Carchidi 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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