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This year has been a rough ride for most ASX shares, but small-cap companies have suffered more than their larger cousins.

The Cyan C3G Fund, which specialises in small-cap stocks, has felt the pain as much as any retail investor.

Portfolio managers Dean Fergie and Graeme Carson told clients in a memo that, as participants in the fund themselves, their personal wealth has also taken a massive haircut.

“There’s no other way to express it. We had a terrible FY22, with the fund falling 38%,” read the memo.

“Even against the S&P/ASX Small Ordinaries Industrials (ASX: XSI), which lost 24%, it was a poor result.”

While they admitted to some mistakes — mainly not taking some profits last year before the crash — the fund has a long-term focus.

“Nobody rings a bell at the bottom, but from what we’re seeing and hearing, our company outlooks are far better than the market prices are currently implying,” read the Cyan memo.

“As such, we remain particularly confident that the prices of our holdings will improve significantly in the near-term.”

With this philosophy in mind, there are a couple of ASX shares in the Cyan portfolio that have been particularly bruised. But Fergie and Carson are holding on for a turnaround.

Strong balance sheet and recurring revenues

Healthcare software provider Alcidion Group Ltd (ASX: ALC) saw its share price tumble nearly 70% over the 2022 financial year.

Fergie and Carson admitted COVID-19‘s impact on its United Kingdom growth and an “ill-timed” stock issue late last year just before markets plunged did not help.

“However, a raft of recent contract wins have shown significant catch-up by the company,” their memo read.

“Indeed, total revenue for FY22 is likely to come in at around $34 million — up 40% on the prior year — a positive result and in stark contrast to recent stock price action.”

Alcidion’s market capitalisation is now down to just $146 million, so analyst coverage is scarce.

However, the experts at Canaccord Genuity Corp agree with Cyan. They rate the stock as a strong buy, according to CMC Markets.

The Cyan portfolio managers said that all the original tailwinds are still there for the company to make a roaring comeback. 

“With Alcidion having a strong balance sheet, significant recurring revenues derived from government and private domestic and international hospitals and health care providers, there are numerous reasons to expect this stock could be a strong performer again in FY23.”

Sell-off of this takeover target is ‘overdone’

The share price for micro-investment platform Raiz Invest Ltd (ASX: RZI) plunged 60% over the 2022 financial year.

Fergie and Carson said the stock “hurt us materially”.

“Frustratingly, the company’s metrics have actually improved over the year,” read their memo.

“FUM [funds under management] is up from $905 million to $940 million and customer numbers globally are up 35% — albeit in Australia they have only risen 3%.”

While they admitted there is transitory concern about a slowdown in domestic growth, they reckon the market has overreacted.

“We seriously consider that the pull-back in the price is overdone, particularly in light of the $10 million investment Seven West Media Ltd (ASX: SWM) made in the company late last year.”

The Cyan team also thinks Raiz’s considerable customer base and reduced valuation could make it attractive as a takeover target.

“With almost 300,000 active and engaged financial customers in Australia, Raiz is generating strong recurring revenues and is likely to garner the interest of a myriad of local financial institutions.”

The post 2 ASX shares we’re sticking with after 60% falls: fund managers appeared first on The Motley Fool Australia.

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More reading

• ‘Frustrating’: Fund backs 3 great ASX shares with plunging prices

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 positions in and has recommended Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Westpac Banking Corp (ASX: WBC) share price has fallen by double digits over the last couple of months. Is this an opportunity, or are things going to get worse in FY23?

Westpac is one of the biggest banks in Australia, along with Australia and New Zealand Banking Group Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB) and Commonwealth Bank of Australia (ASX: CBA). Collectively, they are called the big four ASX banks.

Since the announcement of the supersized interest rate hike by the Reserve Bank of Australia (RBA) in June, the Westpac share price has underperformed the other big four banks. In June, and again in July, the RBA decided to increase the interest rate by 50 basis points (or 0.5%).

As one of the biggest banks in Australia, changes in the official interest rate can have a significant impact on bank profitability.

Let’s consider how this could impact the bank margins.

Net interest margin (NIM)

One of the main ways to measure how profitable a bank is by looking at its NIM.

This measures the revenue it generates from lending compared to the cost of the money it’s lending out.

One of the biggest sources of funding for banks is the cash held for customers in savings accounts and transaction accounts.

For example, if a customer has $1,000 in a savings account and it earns a 1.5% interest rate and then it’s lent out at an interest rate of 3.5%, that would be a NIM of 2%.

In the Westpac FY22 half-year result, the bank’s NIM was 1.85%.

However, experts believe that the NIM could rise in light of the RBA interest rate rises.

Banks are passing on the rate hikes in full to borrowers while, at the same time, are being accused of being slow in passing on increases to savers.

Bad debts to rise?

However, while rising interest rates could help bank lending margins, it could also cause pain to the households on its loan book. That could be, or has already been, bad news for the Westpac share price.

Higher interest rates mean increased interest payments for households. This comes at the same time as elevated inflation which is also hurting household budgets.

This could push some households into mortgage stress, which could lead to elevated loan arrears for banks and possibly higher bad debts.

The broker Macquarie is one of the experts to note that the loan impairment expense could rise.  Macquarie is currently ‘neutral’ on Westpac, with a price target of $22.

FY23 expectations

Estimates on CMC Markets suggest that Westpac will generate earnings per share (EPS) of 154.9 cents and 190.5 cents in FY23. That implies a possible rise in profit of 23% in FY23, if the projections prove correct. That means the Westpac share price is valued at under 11 times FY23’s estimated earnings.

In terms of the dividend, CMC Markets numbers suggest an annual dividend per share of $1.23 in FY22 and $1.29 in FY23. This implies a possible grossed-up dividend yield of 9.3% in FY23.

The post Are clouds gathering for the Westpac share price in FY23? appeared first on The Motley Fool Australia.

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More reading

• Where’s the Westpac share price heading in July?
• What’s the outlook for ASX 200 dividend shares in FY23?
• Could rising rates hurt ASX 200 bank shares in the longer run?
• Here’s a look at the Westpac share price’s dismal 2022 financial year
• What’s going on with ASX 200 bank shares on Tuesday?

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 and 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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If you’re looking for ASX dividend shares to buy, then the two listed below could be worth considering.

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

Accent Group Ltd (ASX: AX1)

The first ASX dividend shares to look at is Accent. It is a footwear focused retailer that owns a growing collection of store brands such as Athlete’s Foot, HYPEDC, Platypus, Sneaker Lab, and Stylerunner.

Unfortunately, due to tough trading conditions caused by supply chain challenges and weaker consumer spending, Accent’s shares have fallen hard this year. However, the team at Bell Potter believe investors should look beyond this short term pain and focus more on the long term gains.

The broker recently reiterated its buy rating and $2.20 price target. It said:

We think AX1 has a long runway ahead in terms of the athleisure market opportunity and is well placed to gain share given its accelerated vertical sales strategy. We sit ~6% ahead of consensus NPAT expectations for FY24e primarily driven by higher store based revenues & vertical sales assisted by the Glue Store roll out which in our view should see overall margin expansion through the medium term.

As for dividends, Bell Potter is forecasting fully franked dividends of 5.8 cents per share in FY 2022 and then 10.7 cents per share in FY 2023. Based on the current Accent share price of $1.34, this will mean yields of 4.3% and 8%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that has been rated as a buy is the HomeCo Daily Needs REIT. It is a property company that invests in convenience-based assets across neighbourhood retail, large format retail, and health and services.

Goldman Sachs is a fan of the company and has a buy rating and $1.70 price target on its shares. It recently commented:

We believe HDN is undervalued at its current valuation given its diversified tenant base, and see it as well positioned to benefit from the shift to omni channel retailing, with additional external growth opportunities to drive earnings growth over the medium-term.

The broker is also forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.35, this will mean dividend yields of 5.9% and 6.7%, respectively.

The post 2 top ASX dividend shares that analysts rate as buys appeared first on The Motley Fool Australia.

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More reading

• How much has the Accent dividend paid to shareholders in the last 5 years?
• Experts say these ASX dividend shares are buys this month
• Why experts rate these top ASX dividend shares as buys
• Analysts name 2 top ASX dividend shares with big yields to buy
• What is the current dividend yield for Accent 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 recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Redpoint Australian Equity Income Fund portfolio manager Max Cappetta gives his thoughts on where ASX shares are now and where they are heading.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Max Cappetta: My name is Max Cappetta and I am the portfolio manager for the Redpoint Australian Equity Income Fund.

The Redpoint Australian Equity Income Fund seeks to capture a higher and more consistent gross dividend yield relative to the S&P/ASX 200 Index (ASX: XJO) and is specifically managed for zero-tax rate retiree investors. 

We take an active approach to investment management focusing equally on capturing a higher income — through dividends and buybacks — and stock selection to deliver better total returns over the long term.

MF: The world has changed so much since we last spoke. How do you see the state of play at the moment for ASX shares and where do you see it going?

MC: We’ve obviously had the revaluation we had to have, if you will. Interest rates are on the way up. The ASX 200 is probably back to where it was in the middle of 2019 in price terms. 

Interestingly, we’re at 1.35% on the cash rate. In May 2019, we’re at 1.5%. So, we’re, in many ways, back to where we started, albeit there’s been a lot of volatility in between. 

I think the big question now is where do interest rates peak in this cycle? What is inflation going to do, which will obviously drive that decision on interest rates? And are we going to see an economic slowdown or are we going to see recession?

If we see a slowdown, there’s one set of outcomes and… if we’re going into a recession, then maybe you want to be looking at even more defensive positions, looking at things like company quality as being a place to hide in the meantime while this revaluation of markets continues to play out.

The interesting thing I think for us, particularly when we look at the opportunity for income investors, is really the dynamics of where income is being earned in the Aussie equity market. 

I think it’s going to be a really interesting thematic over the next year or two. We saw iron ore and resources very strong last year. And while there were a lot of good cash payments of dividends, the share prices were volatile given what was happening in China. We’ve now got a setup where the energy sector, the big oil and gas giants are going to be really leading with massive record dividend payments over the next six to 12 months, given what’s happened to energy prices.

We just need to be careful that if there is some resolution in Ukraine, and if we do in fact see global demand and global growth weaken, then that causes those commodity prices to come back.

But otherwise in the near term, there’s certainly good earnings to be had there while I think people start to reposition back into the industrial sector to get earnings growth that will emanate over the next few years — now that we are hopefully really getting out of the post-COVID and in many ways, getting back to some economic growth… once we figure out exactly where interest rates are going to stop.

The post The ASX sector set to pay out ‘massive record dividends’: fund manager appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Could the Nickel Industries share price more than double from here?
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why are Lake Resources shares becoming a short seller target?

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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week on a very disappointing note. The benchmark index fell 1.15% to 6,602.2 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market is expected to open the day higher on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 21 points or 0.3% higher. This is despite Wall Street taking a tumble last night with the Dow Jones dropping 0.5%, the S&P 500 falling 1.15%, and the NASDAQ sinking 2.25%.

J Capital targets Lake Resources

The Lake Resources N.L. (ASX: LKE) share price will be on watch today after short seller J Capital targeted the lithium developer. It commented: “Lake is one of several lithium explorers planning to use an unproven direct lithium extraction (DLE) technology to remove lithium from brine.[…] We believe, however, DLE will still use large amounts of water and produce toxic waste. Lake has failed to get an operational pilot plant on site three years after promising it would.”

Oil prices fall

It could be a subdued day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.2% to US$103.50 a barrel and the Brent crude oil price has fallen 0.45% to US$106.53 a barrel. Concerns about rising COVID cases in China weighed on prices.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor day after the gold price fell overnight. According to CNBC, the spot gold price is down 0.6% to US$1,731.2 an ounce. A strong US dollar pushed gold close to a nine-month low.

Costa given buy rating

The Costa Group Holdings Ltd (ASX: CGC) share price came under pressure on Monday. One leading broker that sees this as a buying opportunity is Goldman Sachs. This morning the broker reiterated its buy rating with a $3.65 price target. It said: “We believe CGC is well positioned to deliver strong earnings growth in CY22/CY23/CY24.”

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

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More reading

• Could the Nickel Industries share price more than double from here?
• Here are the top 10 ASX shares today
• Why Costa, Domino’s, EML, and Novonix shares are dropping
• Why are these ASX 200 lithium shares tumbling today?
• Here are the 3 most heavily traded ASX 200 shares on Monday

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 COSTA GRP 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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Investors that are looking for dividend options might want to check out the two ASX shares listed below.

Both of these ASX dividend shares have recently been tipped as buys with attractive yields. Here’s why analysts are bullish:

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting could be a dividend share to buy. It is a baby products retailer with a growing presence both online and through its growing collection of national superstores.

Citi is a fan of the company and believes it is well-placed to navigate the tough consumer environment thanks to its strong position in a less discretionary category. It also sees recent expansions into new areas as positives. The broker commented:

We see Baby Bunting well placed to outperform the broader small cap retail sector this year given the non-discretionary nature of its category. […] Further, the stocks growth prospects are in some respects less risky than other high multiple retailers who are relying more on new markets and acquisitions. […] we see growth into toys and babywear categories as a positive for Baby Bunting and provides another strategy for the company to complement its i) rollout, ii) exclusive brands and private label growth, iii) supply chain initiatives.

Last week, its analysts retained their buy rating and $6.22 price target on its shares.

As for dividends, Citi is forecasting fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.32, this will mean yields of 3.7% and 4.4%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX dividend share that could be in the buy zone is insurance giant QBE.

The team at Morgans recently named the company as one of its best ideas for the month. The broker likes the insurer due to its cheap valuation and positive outlook. Morgans has an add rating and $14.76 price target on the company’s shares.

The broker commented:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~14x FY22F PE.

In respect to dividends, the broker has pencilled in a 41.4 cents per share dividend in FY 2022 and then a 66.3 cents per share dividend in FY 2023. Based on the latest QBE share price of $11.92, this equates to yields of 3.5% and 5.6%, respectively

The post 2 excellent ASX dividend shares rated as buys by experts appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Brokers rate these ASX dividend shares as buys
• Broker names 2 ASX 200 financials shares to buy
• 2 excellent ASX dividend shares rated as buys by brokers
• Why I think these 2 ASX shares are ideal for growth investors

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 Baby Bunting. 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 Vanguard MSCI Index International Shares ETF (ASX: VGS) has seen a sizeable drop in 2022. It’s down by around 16% since the start of 2022.

For an exchange-traded fund (ETF), that’s a pretty hefty drop considering it represents a whole group of businesses.

How many businesses are in the VGS ETF? More than you can count on two hands, or even 100 hands. At the end of May 2022, there were 1,474 businesses in the ETF’s portfolio.

That’s a lot of underlying diversification in just one investment. The diversification is one of the main reasons to like the Vanguard MSCI Index International Shares ETF in my opinion.

The purpose of this ETF is about providing exposure to many of the world’s largest companies listed in major developed countries, according to Vanguard. Vanguard is one of the world’s largest asset managers and aims to provide cheap investment options for investors.

There are a few different reasons why I think this could be a good time to consider this compelling ETF, besides the high level of its holdings.

Geographic and industry diversification

One of the attractive things about this ETF is how the holdings come from around the globe. Of course, the US still gets the lion’s share (70%) of the allocation because that’s where a majority of the world’s biggest businesses are. But I like that approximately 30% of the portfolio is invested in other markets.

The following countries have an allocation of at least 2%: Japan (6.2%), the UK (4.5%), Canada (3.7%), France (3.2%), Switzerland (2.9%), and Germany (2.3%).

There are also a number of other countries with a weighting of more than 0.5%: the Netherlands, Sweden, Hong Kong, Denmark, Italy, and Spain.

But it’s not just geographic diversification that the ETF offers. It’s also spread across a wide array of industries. This means that during times like 2022, some gains in some industries (like energy) can offset the decline in other sectors (like IT).

I think the risks are lowered with the VGS ETF being invested across a number of sectors. At the end of May 2022, there were five sectors that had a double-digit weighting: IT (21.8%), healthcare (13.5%), financials (13.4%), consumer discretionary (10.8%), and industrials (10%).

Cheaper valuation

It’s easy enough to say a lower price is better.

However, with rising interest rates, the price of many businesses looks more compelling when looking at the price/earnings (P/E) ratio.

I think that a lower P/E ratio is more attractive when it comes to an index fund like this one.

At the end of May 2022, Vanguard MSCI Index International Shares ETF had a P/E ratio of 17.4 times. I think that’s a reasonable number considering the quality of its portfolio.

Quality holdings

Many companies in the VGS portfolio have attractive long-term growth potential, featuring numerous industry leaders in the US or even globally.

I’ll list the top 10 holdings: Apple, Microsoft, Alphabet, Amazon.com, Tesla, Johnson & Johnson, UnitedHealth, Nvidia, Meta Platforms, and Berkshire Hathaway.

To highlight how financially strong the businesses in the portfolio are, let’s look at the return on equity (ROE) ratio. This essentially measures the profit generation of the business, compared to how much shareholder money is invested/retained in the business. At May 2022, the Vanguard MSCI Index International Shares ETF had a ROE of 18.1%. That’s attractive in my opinion.

Foolish takeaway

While it’s possible that the VGS ETF could drop further, I believe this lower level now represents a good, long-term buying opportunity. Plus, it has an annual management fee of 0.18%, which is good value for what it offers in my opinion.

The post I think the 16% drop in 2022 makes this Vanguard ETF a buy appeared first on The Motley Fool Australia.

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More reading

• Here are 2 top ETFs to boost your portfolio
• Here are 2 top ETFs for ASX investors next week
• What dividend yield is the Vanguard MSCI Index ETF offering to ASX investors?
• What do you get when you invest in the VGS ETF?
• 3 popular ETFs for ASX investors to buy now

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. 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 positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Microsoft, Nvidia, Tesla, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and UnitedHealth Group and has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Nvidia, and Vanguard MSCI Index International Shares 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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The Lynas Rare Earths Ltd (ASX: LYC) share price was a true outperformer in the 2022 financial year (FY22).

The S&P/ASX 200 Index (ASX: XJO) rare earths producer kicked off FY22 trading for $5.71. By the closing bell on 30 June 2022, it was trading for US$8.73, a gain of 53% over the 12 months.

That performance is even more impressive with the ASX 200 itself falling some 10% in FY22.

Based out of Perth, Lynas is the second-largest producer of rare earths on the planet. It also counts as the only significant rare earths producer outside of China. The company’s Australian concentration plant is located at Mt Weld, Western Australia. It has an advanced materials plant in Malaysia’s Gebeng Industrial Park.

Lynas share price hits multi-year high in FY22

If not for the big retrace in June, which saw the Lynas share price fall 11% amid a wider market sell-off among materials and resources shares, the numbers for FY22 would be even hotter.

In fact, on 4 April, the company hit multi-year highs, closing at $11.39 per share.

The Lynas share price has certainly benefited from the West’s push to break China’s monopoly on rare earths, which consist of 17 different elements.

The various metals are critical for the production of all sorts of technology, from computers and smartphones to a range of modern military hardware. That’s seen the Australian Federal Government list rare earths among its critical mineral designations.

It’s also seen investors turn their attention to ASX rare earths explorers and producers as the price of rare earth elements has rocketed.

Record quarterly sales amid higher prices

In April the Lynas share price received a boost when the company reported exceptionally strong quarterly results for the three-month period ending 31 March.

Sales and production were both up as were the prices it obtained for its products.

Lynas reported quarterly sales revenue of $327.7 million. That was an increase of 61.7% from the same quarter in FY21 and a new quarterly record.

The company also realised a 17.5% year-on-year increase in its total rare-earth-oxide (REO) production and a 24.1% increase in its Neodymium-Praseodymium (NdPr) production, setting another quarterly record.

This came as the average selling price it achieved came in at $64.7 per kilogram, up more than 82% year-on-year.

The post The Lynas share price soared 53% in the 2022 financial year. Here’s what happened appeared first on The Motley Fool Australia.

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More reading

• Why did the Lynas Rare Earths share price tumble in June?
• Own Lynas shares? Here’s the latest challenge faced by the rare earths miner
• Mineral Monday: What you need to know about rare earths and which ASX shares are cashing in on them
• Guess which ASX 200 mining shares these experts are backing
• How is the Lynas share price performing against its sector this month?

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

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It’s been a rough time of late for the Nickel Industries Ltd (ASX: NIC) share price. Nickel Industries (formerly known as Nickel Mines) ended up closing at 94 cents a share today, down 1.57% from Friday’s close of 96 cents. That puts the company’s shares down around 35% year to date, as well as down more than 10% over the past 12 months.

So why have Nickel Industries shares been in the wars of late? There have been a few things going on in the nickel space. As my Fool colleague Monica looked into last month, nickel markets were roiled earlier this year when nickel was caught in a short squeeze. This saw a dramatic spike, followed by a plunge, in the nickel price.

That overshadowed what was arguably a positive quarterly result in late April. This saw Nickel Industries report a 10.7% rise in nickel production, as well as an 18.7% lift in earnings before interest, tax, depreciation, and amortisation (EBITDA) to US$81.7 million.

So after such a rough patch for Nickel Industries, what might the future hold for this nickel miner?

Is the Nickel Industries share price a buy today?

Well, one broker reckons the Nickel Industries share price could more than double its current level over the next 12 months. As my Fool colleague James covered last week, ASX broker Bell Potter is currently very bullish on Nickel Industries shares.

The broker currently rates the company as a “buy”, with a 12-month share price target of $2 a share. That would represent an upside of almost 113% on the last share price.

Here’s some of what Bell Potter said about the company:

Despite rising input costs in CY22 [the 2022 calendar year], NIC has been able to maintain and expand margins and following the successful commissioning of the Angel Nickel Project, NIC is on track for earnings growth of over 60%…

NIC is trading on undemanding valuation multiples and remains one of our Top Picks for CY22.

So that’s a pretty unambiguously bullish opinion there from Bell Potter. No doubt investors would be delighted to hear it too. But we shall have to wait and see what the next 12 months hold in store for this company.

At the current Nickel Industries share price, this ASX 200 nickel share has a market capitalisation of $2.56 billion, with a dividend yield of 2.97%.

The post Could the Nickel Industries share price more than double from here? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why are Lake Resources shares becoming a short seller target?
• Here are the 5 best ASX 200 bank shares of FY22
• ASX 200 mining shares glide lower as expert reduces commodity targets

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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S&P/ASX 200 Index (ASX: XJO) mining and tech shares weighed on the market on Monday. The ASX 200 index was 1.14% lower at 6,602.20 points when the market closed.

Its suffering came on the back of a mixed session on Wall Street. The S&P 500 slipped close to 0.1% on Friday while the Dow Jones Industrial Average fell 0.15%. Meanwhile, the NASDAQ Composite rose 0.12%.

The S&P/ASX 200 Materials Index (ASX: XMJ) plunged more than 2% on Monday, potentially on the back of falling base metals. Iron ore futures lifted 0.4% on Friday to trade at US$113.76 – 1.3% lower than it ended the previous week.

Today wasn’t much better on the S&P/ASX 200 Information Technology Index (ASX: XIJ). The sector also plunged more than 2% on Monday, driven lower by the EML Payments Ltd (ASX: EML) share price’s 24% tumble. The company notified the market of its CEO’s unexpected departure this morning.  

The S&P/ASX 200 Energy Index (ASX: XEJ) posted a slight gain today, potentially on the back of higher oil and coal prices.

At the end of Monday’s trade, two of the ASX 200’s 11 sectors were in the green.

But not all shares suffered today. Read on to find out which ASX shares bested the rest to post Monday’s biggest gains.

Top 10 ASX shares countdown

Perhaps unsurprisingly, the top performer among ASX’s 200 biggest companies by market capitalisation is coal producer New Hope Corporation Limited (ASX: NHC).

The company’s share price lifted around 5% today, likely due to rising coal prices. Read more about New Hope Corporation here.

The Meridian Energy Ltd (ASX: MEZ) share price was the second best performer, gaining around 4%. Catch up on what’s been happening with Meridian Energy here.

Today’s top 10 biggest gains were made by these ASX shares:

ASX-listed company	Share price	Price change
New Hope Corporation Limited (ASX: NHC)	$3.79	5.28%
Meridian Energy Ltd (ASX: MEZ)	$4.41	4.5%
Summerset Group Holdings Ltd (ASX: SNZ)	$9.36	4.23%
Suncorp Group Ltd (ASX: SUN)	$11.25	1.81%
Shopping Centres Australasia Property Group Ltd (ASX: SCP)	$2.87	1.41%
Sonic Healthcare Limited (ASX: SHL)	$33.75	1.35%
Vicinity Centres (ASX: VCX)	$1.90	1.33%
Whitehaven Coal Ltd (ASX: WHC)	$5.09	1.19%
Scentre Group (ASX: SCG)	$2.75	1.1%
Magellan Financial Group Ltd (ASX: MFG)	$12.01	1.02%

Data as at 3:59 pm AEST.

Our top 10 ASX shares today 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 shares today appeared first on The Motley Fool Australia.

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More reading

• Could the Nickel Industries share price more than double from here?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Althea, AnteoTech, New Hope, and Omni Bridgeway shares are pushing higher
• Why are Lake Resources shares becoming a short seller target?
• Here are the 5 best ASX 200 bank shares of FY22

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 EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments and Shopping Centres Australasia Property Group. The Motley Fool Australia has recommended 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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