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The JB Hi-Fi Limited (ASX: JBH) share price is pushing higher on Tuesday morning.

At the time of writing, the retail giant’s shares are up 5% to $43.08.

Why is the JB Hi-Fi share price rising today?

Investors have been bidding the JB Hi-Fi share price higher today after the retailer released an update on its performance in FY 2022.

According to the release, JB Hi-Fi had a strong fourth quarter despite concerns about inflation and rising living costs. This ultimately led to the company’s sales and earnings reaching record levels for the full-year.

Based on unaudited results, it expects to report the following for FY 2022:

• Sales up 3.5% to $9,232 million
• EBIT up 6.9% to $794.6 million
• Net profit after tax up 7.7% to $544.9 million

What happened in the fourth quarter?

The retail giant finished the year in style with strong comparable store sales achieved across all its brands during the fourth quarter.

JB Hi-Fi Australia reported comparable store sales of 10.9% and total sales of 11.6% during the quarter. This underpinned a 4% increase in sales for FY 2022.

It was a similar story for the JB Hi-Fi Zealand business, which delivered comparable store and total sales growth of 7.7% for the fourth quarter. This took its full year sales into positive territory at 0.3%.

Finally, The Good Guys business was on form and reported a 7.3% lift in comparable store sales and a 7.8% increase in total sales during the three months. As a result, The Good Guys delivered total full year sales growth of 2.7%.

Another positive was the company’s online sales. Across the company, online sales were up 52.8% to $1.6 billion in FY 2022. This means that they now represent 17.6% of total sales.

Management commentary

JB Hi-Fi’s Group CEO, Terry Smart, was pleased with the 12 months. He said:

We are pleased to report record sales and earnings for FY22. The benefits of having a strong multichannel strategy were especially evident in the second half as Covid-19 restrictions eased and customers returned to shopping in-store, whilst continuing to shop with us online.

It is a credit to our over 13,000 team members who continue to remain focused on providing outstanding customer service and worked tirelessly to deliver this record result.

The post JB Hi-Fi share price up 5% following record full year results appeared first on The Motley Fool Australia.

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More reading

• I think these 2 ASX 200 dividend shares are buys for income
• Has the JB Hi-Fi dividend been worthwhile in the past 5 years?
• Does the FY23 outlook make ASX retail shares look like bargains?
• Why did the JB Hi-Fi share price fall more than 20% in FY22?
• Down 16% in June: What put the JB Hi-Fi share price on sale?

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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WAM Alternative Assets Ltd (ASX: WMA) is a listed investment company (LIC) that invests in alternative assets.

Most LICs on the ASX invest in ASX shares or global shares. But WAM Alternative typically invests in unlisted businesses and assets.

The tagline of the LIC is that it invests in “unique opportunities beyond traditional assets”.

At the end of June 2022, WAM Alternative Assets had gross assets of $243.4 million.

What investments are in the portfolio?

Looking firstly at the asset class exposure, there are four areas where the LIC has money allocated.

At 30 June 2022, it had 41.4% of the portfolio in ‘real’ assets, 25.7% in private equity, 5.5% in real estate, and 27.4% in cash.

The LIC provides a little colour on what each of these segments actually mean.

Real assets are a “diversified portfolio combining agricultural assets and investments in perpetual water entitlements which can be sold or leased to irrigators to generate income”.

The water rights in the ‘real assets’ segment made up 35.4% of the total assets.

Private equity is a “diversified portfolio of unlisted companies with long-term and accelerated growth potential.”

Real estate refers to a portfolio of domestic and international industrial office assets.

Talking to Livewire, the WAM Alternative Assets portfolio manager Dania Zinurova said that it has been hard for ordinary investors to get access to these sorts of assets, but an investment vehicle like this LIC is “democratising alternative investing for retail investors”.

The LIC’s strategy is to invest ‘thematically’ and focus on four key megatrend areas. These are essentially just trends but are strong and/or long term in nature.

Those four areas of focus are: a growing ageing population, climate change, digitalisation, and increasing demand for food.

Zinurova explained to Livewire what the investment team are looking for with these trends:

Within those megatrends, we look for strategies that are supported by strong long-term tailwinds and apply a holistic portfolio construction approach rather than follow rigid strategic asset allocation targets.

Top holdings

Let’s look at some of the biggest holdings in the WAM Alternative Assets portfolio.

WAM describes the Argyle Water Fund as the leading non-irrigator water investor in Australia.

Another ‘real asset’ is the Strategic Australian Agriculture Fund, which invests in Australian water entitlements, Australian farmland and associated businesses, and Australian agricultural infrastructure.

Discussing the Argyle Water Fund, Zinurova told Livewire:

As the returns in this asset class are driven by a risk premium (i.e. climatic conditions) that differs from the equity risk premium of public equities, it provides valuable diversification to an investment portfolio.

However, the goal is to reduce the water allocation down to between 15% to 20% of the portfolio over time.

Turning to private equity next.

One investment is Birch Waite, a manufacturer of premium condiments, desserts, and beverages. Another example is aCommerce, a provider of outsourced e-commerce solutions in South-East Asia.

Shopper is another investment, which is the “fastest offline media business” in Australia. Next is esVolta, a developer of utility-scale battery energy storage projects in the US.

The last example is GMHotels, which owns and operates a portfolio of hotel assets in Australia.

Finally, looking at a couple of real estate examples, there is the Revesby Industrial Income Fund in NSW, and a property in Manhatten, New York, at 2 Rector Street.

WAM Alternative Assets share price snapshot

Over the past month, WAM Alternative Assets shares have risen by around 4%.

The post Own WAM Alternative Assets shares? Here’s what you’re invested in appeared first on The Motley Fool Australia.

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More reading

• Hub24 share price sinks 7% despite record year
• JB Hi-Fi share price up 5% following record full year results
• Brokers: Buy these 2 leading ASX 200 shares in July
• AMP share price in focus as Mirvac wins control of $7.7 billion office fund
• Why Bitcoin, Ethereum, and Cardano are rocketing higher today

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 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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Analysts are always scouring the S&P/ASX 200 Index (ASX: XJO) for potential ASX 200 share opportunities.

Share prices are changing all the time. As we’ve seen in recent times, business valuations can rapidly fall when investors become fearful.

Sometimes these declines can open up opportunities for investors to buy at a good price. Brokers have named two of the latest compelling ASX shares to look at, with the lower prices now representing good buying potential.

Keep in mind, a price target is just a guess of where analysts think a share price will be in 12 months.

Let’s have a look.

Breville Group Ltd (ASX: BRG)

The broker Morgan Stanley recently re-iterated its ‘overweight’ rating on appliance maker Breville. ‘Overweight’ is similar to a buy rating. The price target is $25, which suggests a potential rise of around 26% over the next year.

Since the beginning of 2022, the Breville share price has fallen by almost 40%. One of the key reasons the broker currently thinks Breville is attractive is because of the potential global growth in the next few years.

Breville thinks there’s a global $9.7 billion revenue opportunity. There are a number of new markets that the business is focused on including Germany, Austria, Switzerland, Spain, Portugal, France, Italy, Mexico, Belgium, the Netherlands, and Luxembourg.

The ASX 200 share also recently completed the acquisition of Italian-based business LELIT. It designs, manufactures, and markets premium prosumer home coffee equipment in Europe and throughout the world.

Breville described the company as a rapidly growing disruptor in the premium Italian-made espresso machine and grinder market. The total cost was $140 million.

DEXUS Property Group (ASX: DXS)

The broker Macquarie rates Dexus, the property business, as a buy. It has a price target of $10.41 on the business, implying a potential rise of just over 10%.

Macquarie likes the look of the Dexus share price, which is down 17% in the 2022 year to date.

Prices of various assets have been falling in recent months amid rampant inflation and rising interest rates.

Macquarie is not that confident on office properties, though the outlook for industrial properties is still compelling with stronger demand for industrial real estate.

The ASX 200 share recently announced that 177 of 186 assets had been externally valued at 30 June 2022 – that comprises 34 office properties, 142 industrial properties, and one healthcare property.

The external independent valuations have resulted in a total estimated increase of around $374 million, or 2.2%, on prior book values for the six months to 30 June 2022.

Dexus said that it has continued to see growth in asset values for well-located industrial and logistics facilities supported by market rent growth.

The value of the office portfolio increased by around 1.7% on prior book values on the back of recent leasing success. The industrial portfolio increased by around 3.8% on prior book values due to “market evidence supporting an increase in market rents and continued tightening of capitalisation rates”.

The post Brokers: Buy these 2 leading ASX 200 shares in July appeared first on The Motley Fool Australia.

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More reading

• AMP share price in focus as Mirvac wins control of $7.7 billion office fund
• 5 things to watch on the ASX 200 on Tuesday
• Flight Centre share price leaps as ‘revenge travel’ takes off
• Here are the top 10 ASX shares today
• This ASX 200 gold miner’s value has plunged from $2b to under $700m. Could it be set for some major M&A action?

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 recommended Macquarie 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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The AMP Ltd (ASX: AMP) share price is on watch this morning after AMP Capital Wholesale Office Fund (AWOF) investors voted to appoint Mirvac Group (ASX: MGR) as trustee.

Losing control of the fund also puts focus on the sale of AMP’s real estate and domestic infrastructure business to Dexus Property Group (ASX: DXS).

The AMP share price was $1.02 at Monday’s market close.

Let’s take a closer look at today’s news from the embattled ASX financial services company.

AMP loses control of AWOF to Mirvac

The AMP share price could be one to watch on Tuesday after the company lost control of a $7.7 billion office fund to fellow S&P/ASX 200 Index (ASX: XJO) constituent, Mirvac.

AWOF is made up of 11 assets concentrated in the Sydney and Melbourne markets. Among its holdings are Sydney’s Quay Quarter Tower and Melbourne’s Collins Place.  

But losing Monday’s vote for control of the fund – as well as a separate $3 billion investment mandate – sees AMP foregoing more than a handful of prestigious assets.

The maximum earnout payable under the sale of Collimate Capital’s domestic leg to Dexus has fallen to around $75 million on today’s news.

The highest price Dexus will pay for the business is now just $325 million, including a $250 upfront cash payment.

Though, AMP previously noted it didn’t expect to receive most of what was a potential $300 million earnout fee.

Mirvac is set to take control of AWOF in mid-October. The property group’s capital under management will surge around 76% to approximately $18.1 billion on the back of the win.

However, the required majority of the fund’s investors didn’t vote to effect a liquidity facility. Mirvac plans to put forward amendments to offer $500 million of liquidity within 20 days of taking control.

AMP has been battling to keep control of the office fund since last year. Mirvac reportedly emerged as a contender for AWOF in September.

AMP won a November vote for the fund’s reins before certain AWOF investors called for yesterday’s vote in May.

The post AMP share price in focus as Mirvac wins control of $7.7 billion office fund appeared first on The Motley Fool Australia.

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More reading

• Why interest rates need to rise despite ASX carnage: economist
• Why did the AMP share price fall 13% in FY22?
• What dragged the AMP share price down 13% in June?
• Here are the top 10 ASX shares today
• ASX bank shares look out, AMP has new tech under the hood

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

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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.

What happened

It’s been another solid day in the crypto world, with headlines that the aggregate value of all cryptocurrencies has once again passed the $1 trillion threshold, bolstering investor confidence in this sector.

This surge higher has been driven, in large part, by recent moves in Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Cardano (CRYPTO: ADA). As of 10:15 a.m. ET, these three top-10 tokens were up 4.1%, 9.1%, and 9.4%, respectively.

While Bitcoin’s solid momentum over the past week, fueled by what appears to be renewed bullish sentiment and strong demand for digital currencies, is garnering headlines, it’s Ethereum’s outsize moves higher that have grabbed most investors’ attention. Last Thursday, Ethereum started rising on news that a tentative date of Sept. 19 has been set for “the merge,” which will combine Ethereum’s mainnet and Beacon Chain, creating a proof-of-stake blockchain. Since Thursday morning, Ethereum has surged more than 35% at the time of writing.

Cardano appears to be benefiting from the enthusiasm around Ethereum’s upcoming merge as the former prepares for its Vasil hard fork, which will bring a number of improvements to Cardano’s blockchain. This hard fork had been delayed, similar to Ethereum’s merge, which led to earlier concerns. However, with more optimism than pessimism today, investors appear to be taking a more positive stance on network upgrades to start the week.

So what

The upgrades underway for Ethereum and Cardano are a source of significant uncertainty for investors. There’s always a chance something will go wrong, and value could be destroyed in the process of making improvements. With bearish sentiment prevailing lately, investors appear to increasingly be erring on the side of caution, waiting for concrete evidence everything will be OK before jumping in.

While those on Ethereum’s developer team, including Ethereum founder Tim Beiko (who initially put the Sep. 19 date out there), have made sure to refrain from providing a “hard” date, investors now have a rough timeline for this catalyst. Other positive factors, such as the narrowing of the spread between staked Ether and Ether, suggest investors are providing significant credence to the idea this merge will take place before the end of Q3.

Now what

The next few months are shaping up to be volatile ones for these top crytpo projects. These various upgrades, previously seen as both catalysts and potential sources of uncertainty, are once again being viewed with a positive lens. That means that, right now, Ethereum’s merge and Cardano’s Vasil hard fork are the bullish catalysts investors have been hoping for.

That said, whether this momentum can be carried forward remains to be seen. This bear market is a doozy, and overall sentiment in the crypto sector continues to reflect extreme fear. Until that changes, it’s going to be hard for such momentum-driven rallies to hold steady. Accordingly, investors may want to exhibit caution before adding aggressively to these top growth-oriented projects. 

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

The post Why Bitcoin, Ethereum, and Cardano are rocketing higher today appeared first on The Motley Fool Australia.

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More reading

• No contest: My top crypto to buy now
• Will Bitcoin hit $100,000 in 2024?
• 5 warnings from the ATO for crypto investors
• Will the US Fed continue to influence the Bitcoin price in the 2023 financial year?
• Here’s Bitcoin’s only path to $300,000

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

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Shares in Flight Centre Travel Group Ltd (ASX: FLT) continued to wobble throughout FY22.

After hitting a 52-week low of $13.67 following the COVID-19 outbreak in Australia, the ASX travel share rebounded strongly.

In fact, its shares rocketed to a post-COVID high of $25.28 on 5 October.

However, this was short-lived as Flight Centre shares erased their strong gains to trade sideways for the remainder of FY22.

Nonetheless, we take a look at what some industry experts think the Flight Centre share price will do in FY23.

What’s in store for Flight Centre shares?

Turning to FY23, Goldman Sachs analysts believe the medium-term view will be largely unchanged for the Flight Centre share price.

The team acknowledged Flight Centre’s positive trading update in which the company reported “very strong activity levels in March 2022”.

However, external factors impacting the current economic climate, such as extreme inflationary movements, could hit the company’s earnings.

Higher airfares would likely drive potential holidaymakers away as the cost of living soars.

Furthermore, the emergence of new COVID-19 strains, increased competition in the corporate segment, and geopolitical tensions may disrupt operations and thus, potential revenue.

Goldman Sachs expects Flight Centre to report total EBITDA of $434.9 million, up 0.3% from previous forecasts.

As such, the broker maintained a neutral rating with a 12-month price target of $20.40 per share.

Based on Monday’s closing price of $17.37, this implies an upside of around 17.5% for investors.

The broker Macquarie has a similar view on Flight Centre shares. Its analysts raised their price target by 16% to $21.95 apiece.

Key upside risks include a faster-than-expected recovery as well as significant market-share gains in the online channel and travel bubble routes.

In the past 12 months, the Flight Centre share price has risen 16.9%, but is down 1.4% year-to-date.

The post Is the Flight Centre share price on a runway to growth in FY23? appeared first on The Motley Fool Australia.

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More reading

• Flight Centre share price leaps as ‘revenge travel’ takes off
• These are the 10 most shorted ASX shares
• Clipped wings: Why ASX 200 travel shares are having trouble getting off the ground today
• Why Aurizon, Bega Cheese, Flight Centre, and Lake Resources shares are sinking
• Own ASX travel shares? Here’s the outlook for FY23

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 positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended 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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If you’re wanting to boost your income with some dividend shares, then you might want to consider the two listed below.

Here’s what you need to know about these dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share for investors to look at is leading footwear retailer, Accent.

Its shares have been sold off this year amid concerns over consumer spending as inflation rears its ugly head. While this is disappointing, the team at Bell Potter appear to believe it could be a buying opportunity.

Last month its analysts retained their buy rating with a $2.20 price target on the company’s shares.

In addition, with the broker forecasting fully franked dividends of 5.8 cents per share in FY 2022 and 10.7 cents per share in FY 2023. Based on the current Accent share price of $1.38, this would mean yields of 4.2% and 7.8%, respectively, over the next couple of years.

Elders Ltd (ASX: ELD)

Another ASX dividend share to look at is Elders. It is an agribusiness company that provides a range of services to rural and regional customers across the Australia/New Zealand region.

Elders has been a very strong performer this year. For example, during the first half of FY 2022, the company reported an 80% increase in first-half EBIT to $132.8 million last week.

This went down well with the team at Goldman Sachs. In response, the broker put a buy rating and $21.00 price target on its shares. It likes Elders due to its “strong track record; good industry structure; potential for positive earnings surprise; and an attractive valuation.”

As for dividends, Goldman is forecasting dividends per share of 50 cents in FY 2022 and 53 cents in FY 2023. Based on the current Elders share price of $11.99, this implies attractive yields of 4.2% and 4.4%, respectively.

The post Analysts name 2 ASX dividend shares to buy with 4%+ yields appeared first on The Motley Fool Australia.

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• Why analysts say these excellent ASX dividend shares are buys
• ASX 200 supermarket shares lead as household spending jumps
• 2 top ASX dividend shares that analysts rate as buys
• How much has the Accent dividend paid to shareholders in the last 5 years?
• Experts say these ASX dividend shares are buys this 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 recommended Accent Group and Elders 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 a month it has been for the South32 Ltd (ASX: S32) share price.

After touching a recent high of $5.18 on 8 June, shares in the diversified mining and metals company tanked to a year-to-date low of $3.40 last Friday.

To put that into perspective, this represents a fall of 35% in just over five weeks.

South32 shares finished at $3.48 at yesterday’s market close.

We take a look at what the brokers think of the South32 share price now.

What’s ahead for South32 shares?

Despite suffering short-term volatility, the South32 share price could be in for a strong recovery according to Goldman Sachs.

The broker noted that the share is trading at 2.4 times FY23 EBITDA with a robust free cash flow (FCF) outlook.

This is being driven mostly by exposure to base metal price momentum as well as 10% copper equivalent production growth.

With increased capital returns, Goldman Sachs assumes South32’s buyback will continue to be extended at roughly US$200 million per annum.

Revenue in FY23 is expected to top US$11.39 billion, up from the US$9.87 billion estimate.

Furthermore, underlying EBITDA is projected to come in at US$4.53 billion, an increase from the US$4.45 billion anticipated for FY22.

Subsequently, Goldman Sachs has a buy rating on South32 shares and a 12-month price target of $5.

This implies an upside of roughly 43% on the current share price.

Morgans is even more bullish on South32 shares.

As reported by my Fool colleague, James, the broker is satisfied with the way the miner has transformed its diverse portfolio.

As such, Morgans has an add rating and a $6.10 price target on South32 shares.

South32 share price snapshot

Since the beginning of March, South32 has tumbled on the back of investors’ recession fears.

Nonetheless, its shares are up 17% over the past 12 months, but down 13% year-to-date.

South32 commands a market capitalisation of approximately $16.1 billion.

The post Can the South32 share price bounce back in FY23? appeared first on The Motley Fool Australia.

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More reading

• I think these 2 ASX 200 dividend shares are buys for income
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• These ASX 200 mining shares are bolstering the market today
• Why experts have named these ASX 200 dividend shares to buy

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 positions in and has recommended Goldman Sachs. 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 will be on watch this morning.

This follows the release of the mining giant’s fourth-quarter and full-year production update.

BHP share price on watch after achieving guidance

The good news for the BHP share price today is that the Big Australian finished the year positively and achieved the majority of its guidance.

BHP’s iron ore production rose 8% quarter on quarter to 64.2Mt, bringing its full year production to 253.2Mt. This was flat on the prior corresponding period and in line with its guidance range of 249Mt to 259Mt.

The strong finish to the year was driven by higher volumes at WAIO, reflecting record production from the Mining Area C hub and the continued ramp up of South Flank and improved supply chain performance. Pleasingly, management expects to achieve its cost guidance for WAIO.

Things were even better during the quarter for BHP’s copper operations. Production rose 25% quarter on quarter to 461.8kt. This led to full year production of 1,573.5kt. While this was down 4% year on year it was in line with its guidance of 1,570kt to 1,620kt.

Management advised that this was driven by higher volumes at Escondida due to increased grade and concentrator throughput, higher volumes at Spence thanks to improved leaching performance, and a rebound at Olympic Dam following major smelter maintenance. Escondida cost guidance is expected to be achieved for the 12 months.

Elsewhere, full year metallurgical and energy coal production were in line with guidance at 29.1Mt and 13.7Mt, respectively.

Finally, one small disappointment was that BHP’s nickel production of 76.8kt missed guidance due to an unplanned smelter outage.

Management commentary

BHP’s chief executive officer, Mike Henry, was pleased with the quarter. He said:

BHP produced a strong fourth quarter to cap off a year of significant progress. Our performance for the year has been underpinned by safe, reliable operations and firm demand for our commodities.

We delivered record full-year sales volumes at our iron ore business in Western Australia as a result of reliable operational performance and the South Flank project which continued to ramp up. In copper, Escondida in Chile had record material mined and near-record concentrator throughput, while Olympic Dam in South Australia performed strongly in the fourth quarter after planned smelter maintenance.

Henry appears cautiously optimistic on the year ahead. He commented:

Broader market volatility continues and we expect the lag effect of inflationary pressures to continue through the 2023 financial year, along with labour market tightness and supply chain constraints. Over the year ahead, China is expected to contribute positively to growth as stimulus policies take effect, however, the continuing conflict in the Ukraine, the unfolding energy crisis in Europe and policy tightening globally is expected to result in an overall slowing of global growth.

Our strong focus on safety, operational reliability, cost control and social value will help us navigate these challenges and continue to deliver for all of our stakeholders.

FY 2023 guidance

BHP has provided investors with its production guidance for FY 2023.

This includes copper production of 1,635-1825kt, representing growth of 4% to 16% year on year, and largely flat iron ore production of 249Mt to 260Mt.

The post BHP share price on watch after ‘strong fourth quarter’ appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why BHP, Jumbo, Pendal, and Rio Tinto shares are sinking today
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• ASX 200 midday update: Rio Tinto’s update, BHP and Fortescue sink, AVZ remains suspended

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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Regular readers will already know that macroeconomics are dominating discussions about ASX shares at the moment.

Long-term company outlook has been put aside while the market is, rightly or wrongly, focused on inflation, rising interest rates, the war in Ukraine and a potential recession.

But if you can turn down the noise, there are some bargains out there.

That’s because all those world events will sooner or later pass, and businesses with a positive outlook will likely win in the long run.

Taking this mindset, the team at the Firetrail Absolute Return Fund recently revealed two ASX shares they’ve bought — while explaining why you need not worry about the macro headwinds that forced their prices down this year:

Reforms are painful in the short-term but great in the long run

Network-as-a-service provider Megaport Ltd (ASX: MP1) has seen its share price just devastated this year.

In fact, in mid-November last year, it was touching $22, and now it trades in the high $6s. That’s an almost 70% drop in eight months.

The Firetrail team told clients that Megaport has been caught up in the violent sell-off of technology shares and did have a quarterly update earlier this year that missed expectations.

But it is undergoing a structural change, so there is nothing to worry about in the long run.

“Megaport has recently moved its sales model to third party distribution via some of the world’s largest B2B technology businesses such as Cisco Systems Inc (NASDAQ: CSCO),” read the Firetrail memo.

“Previously, all Megaport sales were done by their internal sales team.”

Firetrail analysts explained how there was “significant value” in this change over the medium to long term.

“However, it has resulted in some short-term disruption, at a time where any growth company that misses expectations has been sold off materially,” the memo read.

“The fund has added capital to the Megaport position on the back of the share price weakness and our conviction in the medium-term outlook for the company.”

Why this time it’s different for James Hardie

The share price for construction materials provider James Hardie Industries plc (ASX: JHX) has also had a shocking 2022.

The stock has lost a painful 40.7% since the start of the year.

The Firetrail team attributed this loss of confidence to rising interest rates, which kills demand for home loans.

“As a result, less houses are built, and there is less demand for related goods such as building materials, building products, fixtures and fittings,” the memo read.

“The added possibility of recession will further deepen any downturn.”

However, the analysts noted that the US housing market, where James Hardie makes much of its revenue, was very different to the last downturn during the global financial crisis (GFC).

There has been a chronic underbuild of new homes since the scarring of the GFC, a COVID-induced backlog of construction, and new housing stock remains at just three months of supply.

But most important to James Hardie is the deterioration of existing housing.

“The median age of a house in the US has increased from 32 years old pre-GFC to over 40 years old today.”

This means that, notwithstanding any housing construction slowdown, James Hardie products will enjoy elevated demand from renovations.

“Repair and renovations spending has historically been less volatile and less cyclical than new housing construction.”

So there is a disjoint between market perceptions and business reality.

“Fortunately for James Hardie, about 65% to 70% of its revenue comes from repair and renovations activity,” read the Firetrail memo.

“However, James Hardie’s stock price trades very closely with new home builders in the US.” 

For the Firetrail team, this presents a golden opportunity for the patient investor.

“The material product mix and margin opportunity on offer for James Hardie gives us further confidence in the earnings profile, suggesting the current market dislocation and de-rating presents a compelling opportunity over the medium term.”

The post 2 ASX shares we just bought that everyone’s underestimating: fund appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: ANZ to buy Suncorp Bank for $5bn, Whitehaven Coal’s update
• Chicken and chips: Experts name 3 ASX shares to buy right now
• Brokers name 3 ASX shares to buy today
• Broker names 2 ASX tech shares to buy in July
• Why Block, Megaport, Navigator Global, and Whitehaven Coal shares are rising

Motley Fool contributor Tony Yoo has positions in MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cisco Systems and MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT 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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