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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.

With the Core Consumer Price Index (CPI) rising by 8.6% over the past 12 months, inflation is the word of the year, and many portfolios aren’t fully ready for it. Rising costs give way to thinner margins, and growth-stage companies are getting hit by the market’s reaction particularly hard. 

But you aren’t powerless in the face of inflation. Understanding how to hunt down inflation-resistant stocks is half the battle, and they’re more common than you might think. Let’s take a look at three things to look for when you’re scouting for the stocks that’ll anchor your portfolio’s value during the ongoing inflationary storm. 

1. How necessary are the products for potential buyers?

The first thing to look for when you’re evaluating a stock’s ability to hold value through a patch of inflation is whether its products are something that buyers will be able to do without. For instance, CVS Health (NYSE: CVS) sells a huge number of consumer health items that people need no matter their cost, like contact lens fluid and antacids. That means even if prices rise, consumers will still be buying the products, though they may look for substitutes or cheaper alternatives than what CVS might carry.

Another good example of highly necessary products are many of the life-saving prescription medicines made by Pfizer (NYSE: PFE). In Pfizer’s case, its customers are pharmacies like CVS as well as healthcare systems, which in the U.S. are counterparties to insurers.

If Pfizer hikes the price of a drug that it sells to hospitals to keep pace with inflation, the hospitals can then pass the additional cost on to insurers. What this means is that the company’s primary customers aren’t about to balk at a higher price point for the medicines they need to treat patients, so its base of revenue is unlikely to budge by much.

2. Steady cash flows over time

Stable businesses can weather different economic environments without significant negative impacts to their cash flows. The best way to find a business with steady cash flows is to look at a company with a highly needed group of products and examine its financial performance over a very long period. Take a look at this chart. 

CVS Revenue (Annual) data by YCharts

As you can see, CVS’ revenue and free cash flow (FCF) smoothly and slowly increased over the last 30 years. There were a trio of recessions in that period, as indicated by the shading on the chart, and plenty of different economic forces (including inflation) affecting it over time — but none of that stopped the company’s upward march for very long. And all that needed to happen was executing on its business model of building out retail pharmacies and then selling consumer health goods to people who go there to get their prescriptions filled. 

3. Having a clever plan to deal with inflation

Companies that have an inflation strategy are better equipped to deal with rising input prices and potential softening of demand than those that don’t. For many, the strategy may simply be to “increase prices as much as our customers will tolerate,” but that could easily end up destroying demand and causing revenue to fall.

One innovative strategy used by Costco (NASDAQ: COST) is to keep certain prices, like the price of its hot dog and soda combo in its food court, at a fixed level that doesn’t change in response to inflation, but to let other prices float as needed. Since the 1980s, the combo costs only $1.50, and there are no plans to change that amount.

While it’s true that this means the business will have an ever-poorer margin on the combo, which still faces rising supplier costs, it helps to mitigate the sticker shock that customers experience when buying something familiar. And when competitors are unashamedly hiking prices by significant amounts, it makes those that don’t hike 100% of their prices look all the better — even if some products do end up being marked up. 

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

The post 3 things to look for with inflation-fighting stocks appeared first on The Motley Fool Australia.

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More reading

• Have ASX 200 shares bottomed? Experts weigh in
• Analysts name 2 ASX dividend shares with attractive yields to buy next week
• Down 20% in a month, is the Breville share price a bargain buy or a falling knife?
• Is the ANZ share price and dividend yield too good to ignore?
• The lithium and iron ore ASX shares that I like right now: expert

Alex Carchidi has positions in Costco Wholesale. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Costco Wholesale. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended CVS Health. 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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It’s been, frankly, a horror end to the trading week this Friday, in what has been in itself a horrible week to have been invested in ASX shares. At market close, the S&P/ASX 200 Index (ASX: XJO) lost another painful 1.77%. That puts the ASX 200’s falls for the past week at a depressing 7.76%.

But is this the bottom for ASX 200 shares? After all, the old saying goes that it is always darkest before the dawn. And it certainly feels dark on the ASX right now.

Well according to reporting in the Australian Financial Review (AFR) today, one analyst reckons we could indeed be near the bottom of this market correction. That’s Fundstrat Global technical strategist Mark Newton.

Is the ASX close to a bottom yet?

Newton reckons that last night’s (our time) sell-off on the US markets has brought share prices closer to a bottom. He also added the following:

Evidence of bearishness turning to capitulation has been growing, and I’m confident that markets are nearing a bottoming process which should be in place by the end of June… Cycles, counter-trend exhaustion tools, and very bearish sentiment are all coming together, suggesting markets can make a low in the near future, despite evidence of downward earnings revisions starting to just begin to ramp up…

While a choppy period over the next month might need to happen before a larger rally can happen, it looks right to position long into end of month, and initial lows could be in place by next Friday.

So this is certainly good news for ASX shares if Newton’s predictions turn out to be accurate. The US markets and the ASX are closely correlated, and it’s highly likely that if the US markets started to recover, the ASX would be close behind.

Inflation concerns continue to weigh on the share market

This sentiment is not universal though. The AFR also reported on another, less-bullish outlook, this time from AMP Ltd (ASX: AMP) chief economist Shane Oliver. Oliver reckons there is still a 50-50 chance of a global recession in the next 12 months thanks to the actions of central banks around the world in raising interest rates. “Either way it’s still too early to say that shares have bottomed,” he told the AFR. Here’s some more of what Oliver said:

Energy prices – particularly for oil – are yet to put in a decisive top and it’s hard to be confident that the worst is over for inflation until they decisively stop rising…

When combined with the surge in fixed mortgage rates, it would likely cause real problems for consumer spending, a big spike in mortgage stress and push property prices down by 20 to 30 per cent… which indicates it’s unlikely to happen as it would crash the economy and ultimately push inflation back well below the RBA’s target.

So some divergent outlooks on the ASX share market going forward. No doubt investors will be hoping it’s the former opinion that prevails over 2022 and into next year. But we shall have to wait and see what happens.

The post Have ASX 200 shares bottomed? Experts weigh in appeared first on The Motley Fool Australia.

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• These were the worst performing ASX 200 shares last week
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for dividend shares with attractive yields to buy, then you may want to look at the two listed below.

Here’s why analysts rate these dividend shares highly:

Charter Hall Long WALE REIT (ASX: CLW)

Charter Hall Long Wale REIT could be an ASX dividend share to buy. It is a property company with a focus on office, industrial, and retail sectors.

Its portfolio includes 78 hotel properties leased to ALH Group that were acquired from ALE Property with Hostplus for ~$1.7 billion earlier this year. Combined with its other properties, the company now has a lengthy weighted average lease expiry (WALE) of 12.2 years.

One broker that is particularly positive on Charter Hall Long Wale REIT is Citi. It currently has a buy rating and $5.71 price target on its shares. Citi likes the company due to “the appeal of secure income in uncertain times.”

As for dividends, the broker is forecasting dividends per share of 30.8 cents in FY 2022 and 30.9 cents in FY 2023. Based on the current Charter Hall Long Wale REIT share price of $4.25, this will mean yields of ~7.2%.

Coles Group Ltd (ASX: COL)

Another ASX dividend share for income investors to consider is Coles. It is of course one of Australia’s big two supermarket operators.

It could be a top option due to its defensive qualities and the positive outlook of its sprawling network of supermarket, convenience stores, and liquor stores. The latter is being supported by its refreshed strategy, which is focusing on cutting costs through automation and efficiencies.

Morgans is a fan of Coles and has an add rating and $20.65 price target on its shares.

In respect to dividends, the broker is expecting fully franked dividends of 61 cents per share in FY 2022 and 64 cents per share in FY 2023. Based on the latest Coles share price of $16.76, this will mean yields of 3.6% and 3.8%, respectively.

The post Analysts name 2 ASX dividend shares with attractive yields to buy next week appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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 Breville Group Ltd (ASX: BRG) share price fell further on Friday to finish the session at $17, down 1.28%.

This equates to a 21% dip over the past four weeks for the kitchen appliances manufacturer.

That’s more than twice the fall of the benchmark S&P/ASX 200 Index (ASX: XJO), which has shed almost 10% over the same time frame.

Is the Breville share price a falling knife?

In August 2021, the Breville share price was at an all-time high of $33.61. So now, there’s an almost 50% discount going on the shares of this iconic Australian global brand.

But is it a bargain or a falling knife?

Greg Canavan from Fat Tail Investment Research reckons it’s the latter. In a recent column on Livewire, Canavan said it’s not the right time in the cycle to buy ASX retail shares.

Canavan said:

Well-run retailers are generally excellent businesses to invest in. They generate high returns on equity with minimal debt requirements. They also generate strong cash flows, which enables them to reinvest in growth or pay healthy dividends. And living in a consumerist society with significant asset wealth…no wonder retailers do well.

But over the past 12 months or so, the sector has been under the pump. The Consumer Discretionary index peaked in August last year. It’s down nearly 25% since then. Some stocks are down much further over that time frame.

After declines like this, I start to get interested in a sector. After all, these are quality companies. Bought at the right time of the cycle, they have the ability to provide a real boost to your portfolio. But here’s the problem: it’s not the right time in the cycle for retailers. Not yet, anyway.

Regarding the Breville share price, Canavan said:

Breville is a quality business where the share price has come back into what I would consider an interesting long-term buying range. But momentum is to the downside. Who knows how long it could last? That’s why you’re better off waiting for the trend to exhaust itself before jumping in.

Or a bargain buy?

As my Fool colleague James reported last month, Macquarie has been bullish on Breville shares. In May, the broker had a share price target of $34.80 for Breville, with an outperform rating.

At the end of the month, the broker downgraded the target to $24.65. It reduced it slightly again last week to $23.80. But the Macquarie team still reckons Breville will outperform.

Dow Jones Newswires summarised Macquarie’s recent note:

Breville’s decision to build up inventory levels as a buffer against potential supply-chain disruptions doesn’t concern Macquarie’s analysts, who maintain an outperform rating on the stock.

The analysts say in a note that the small-appliance supplier only pulls forward inventory into the June half from the December half. The timing doesn’t raise any concerns about product obsolescence, they add.

They trim the stock’s target price by 3.4% to A$23.80, but say that reflects the acquisition of Italian coffee-machine manufacturer Lelit. The stock last traded at A$18.01, down 16% over eight straight losing sessions.

Global expansion

Breville is one of the few truly global Australian companies. It was founded in 1932 but the company reckons it’s still got oodles of room left for growth.

Expanding globally is a key component of this long-term goal.

In a recent investor presentation, Breville said it has “a long way to go” with “large, untapped opportunity” that it intends to plug into as soon as possible.

It’s continuing its expansion into new countries, including South Korea this month and Poland next month.

In FY22, Breville has also opened in Norway, Finland, Denmark, and Sweden.

Next, they’ve got their sights set on Germany, Austria, Switzerland, Spain, Portugal, France, Mexico, and Italy.

A key plank in their plans for Italy entails the 100% acquisition of the Italian prosumer specialty coffee group LELIT. Breville is paying 113 million euros for the company.

The deal is expected to be done and dusted on 1 July, according to an update from Breville last week.

What’s next for the Breville share price?

Breville recently reaffirmed its previous guidance for FY22.

The company is expecting earnings before interest and tax (EBIT) “to be consistent with the markets’ consensus forecast of [approximately] $156 million”.

The FY21 EBIT was $136.4 million.

Breville will report its full-year earnings on 23 August.

The post Down 20% in a month, is the Breville share price a bargain buy or a falling knife? appeared first on The Motley Fool Australia.

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• Analysts say these top ASX growth shares could jump over 30%
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Motley Fool contributor Bronwyn Allen has positions in Macquarie Group Limited. 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has been hit pretty hard over the last month amid interest rate rises.

Is the big four bank now a major opportunity for investors? Some experts have been evaluating the situation and do believe that the ASX 200 share is worth looking at.

What’s going on with the ANZ share price?

The ANZ share price has fallen by approximately 17% over the last month.

There is an intense market focus right now on the high inflation levels in Australia, the United States and elsewhere in the world. While inflation alone is problematic, with spiralling costs for households and businesses, it’s also forcing central banks to enact significant interest rate rises to cool the economy.

For example, the US Federal Reserve just increased its interest rate by 75 basis points in June. Earlier this month, the Reserve Bank of Australia (RBA) increased the Australian interest rate by 50 basis points.

While the ANZ share price is down materially, so are plenty of other ASX shares. For example, shares in former tech darling Xero Limited (ASX: XRO) have dropped around 50% in 2022.

Financial commentary for some time has noted that higher interest rates would benefit bank net interest margins (NIM). A higher profit margin could help net profit after tax (NPAT), and that in turn could benefit the ANZ share price.

But, experts such as Morgans have noted that higher interest rates could hurt the bank loan books with potential higher debts. If safer investments like term deposits can provide higher returns, it could also mean that the dividend yields from banks are less popular.

However, with how far the ANZ share price has dropped, is the valuation and ANZ dividend yield now too good to ignore?

Broker ratings on the ANZ share price

The big four ASX bank is rated as ‘equal-weight’ by Morgan Stanley, with concerns that higher interest rates could detract from margins as banks will pay higher interest rates to savers.

Morgan Stanley’s price target on ANZ shares is $28.90. That’s a potential upside of around 35%.

The broker Credit Suisse is more optimistic, rating ANZ a buy with a price target of $30.80 – that implies a potential rise of more than 40%.

Macquarie is another broker that rates it a buy, with a price target of $29.50. That’s a possible rise of almost 40%. This broker thinks that ANZ shares are worth buying in this dip.

How big could the dividend be?

Let’s look at two of the broker forecasts.

Morgan Stanley has pencilled in a grossed-up dividend yield for ANZ of 9.6% in FY22 and FY23.

However, the broker Credit Suisse thinks that the ANZ grossed-up dividend yield could be 9.4% in FY22 and 11.1% in FY23.

The post Is the ANZ share price and dividend yield too good to ignore? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 bank shares slide to 52-week lows on Friday
• ASX 200 bank shares languish on Thursday despite market lift
• Here’s why JP Morgan sees more than 30% upside in the ANZ share price
• Top brokers name 3 ASX shares to buy today
• Why are ASX 200 bank shares having another day to forget?

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 world is in turmoil, but the Australian share market might be better placed to navigate through the rough times than most.

That’s the opinion of T Rowe Price Group Inc (NASDAQ: TROW) head of Australian equities Randal Jenneke, who said ASX shares look “cheap” right now.

“As a result, global money managers have been directing more money toward the Australian stock market,” he said.

“Australia’s cheapness partly reflects its composition and the greater share of value sectors in the index.”

One of the dominant sectors that shape the “composition” of the ASX is mining.

Even after the market panic in the past week, the S&P/ASX 300 Metals & Mining (ASX: XMM) is up 0.4% for the year to date.

So which are the mining shares Jenneke’s team favours at the moment?

‘Globally significant, long-life, low-cost lithium asset’

The T Rowe Price team is a believer in the carbon reduction theme, and how particular minerals may see increased demand because of it.

“We like certain metals including lithium and copper as electric vehicle plays,” said Jenneke.

“For example, Allkem Ltd (ASX: AKE) possesses a globally significant, long-life, low-cost lithium asset that is leveraged to the growing demand for lithium-ion battery technology and energy storage.”

Allkem stocks, like other ASX lithium shares, have really cooled off in recent weeks. They have lost about a quarter of value this month.

Shaw and Partners portfolio manager James Gerrish said earlier this month that lithium is hard to substitute in a modern battery.

“It is a light metal but is able to store large amounts of energy and is an excellent conductor of electricity.”

Cashing in on Chinese real estate revival

The other mineral that Jenneke thinks will enjoy hot demand is iron ore.

And among its producers, his team favours ASX 200 share Rio Tinto Limited (ASX: RIO).

“We think Rio will likely be supported by improved stability in the Chinese property market and significant additional stimulus in the form of infrastructure investment.”

Analysts at Macquarie Group Ltd (ASX: MQG) are also fans of Rio Tinto shares.

“There are expectations that Rio Tinto will pay a grossed-up dividend yield of 15.8% in FY22 and 10.9% in FY23,” reported the Motley Fool’s Tristan Harrison earlier this week.

The Macquarie team has reportedly placed a stock price target of $135 for Rio, which is a 26% premium on the Friday closing price of $107.10.

The post The lithium and iron ore ASX shares that I like right now: expert appeared first on The Motley Fool Australia.

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• Why is the Rio Tinto share price diving 5% on Friday?
• This is what will happen with ASX shares for the rest of 2022: expert
• 3 ASX All Ordinaries shares that leapt more than 10% on Thursday
• ‘Force them to give us a discount’: ASX 200 mining shares lift despite China’s latest move to curb iron ore prices
• Why’s the Allkem share price flaring higher today?

Motley Fool contributor Tony Yoo has positions in Macquarie Group Limited. 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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Despite just being four days long, the S&P/ASX 200 Index (ASX: XJO) has just had its worst week in over two years. Over the four days, the benchmark index shed 6.6% of its value to end the period at 6,474.8 points.

While a good number of shares dropped with the market, some fell more than most. Here’s why these were the worst performers on the ASX 200 last week:

GUD Holdings Limited (ASX: GUD)

The GUD share price was the worst performer on the ASX 200 last week with a decline of 27.1%. Investors were selling down this products company’s shares following the release of a profit warning. Due partly to supply chain issues, GUD downgraded its underlying operating earnings guidance to $147 million in FY 2022. This compares to its previous guidance of $155 million to $160 million. In response to the news, Citi downgraded its shares and slashed its price target.

Block Inc (ASX: SQ2)

The Block share price wasn’t far behind with a disappointing 26.1% decline. This follows an equally poor performance by the payment giant’s NYSE listed shares. Last week Block held its annual general meeting. At the meeting, NorthStar Asset Management hit out at the company’s voting structure and some of management’s recent moves. The latter includes the purchase of a majority stake in music streaming service Tidal, the rebranding from Square to Block, and Jack Dorsey’s passion for cryptocurrencies.

Hub24 Ltd (ASX: HUB)

The Hub24 share price was out of form and tumbled 20.1% over the four days. This may have been driven by weakness in the tech sector and the investment platform provider’s investor briefing event. At the event, the company revealed that platform flows have been affected by market volatility.

Novonix Ltd (ASX: NVX)

The Novonix share price continued its disappointing run and sank a further 19.6%. This means the battery technology company’s shares are now down 76% since the start of the year. Investors have been selling higher risk shares during the market volatility. And with a market capitalisation still over $1.2 billion and no meaningful revenue, Novonix is certainly high up the risk scale.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

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More reading

• These were the best performing ASX 200 shares last week
• Novonix share price loses 20% in dire week for ASX 200 tech stocks
• 3 ASX 200 bank shares slide to 52-week lows on Friday
• Why Block, Fortescue, GUD, and Humm shares are sinking today
• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. and Hub24 Ltd. The Motley Fool Australia has positions in and has recommended Block, Inc. and Hub24 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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Regular readers will know long-term buy and hold is the philosophy espoused at The Motley Fool.

But of course, this doesn’t mean that every stock you hold for the long run will end up a winner.

In fact, it’s fantasy for both professional and amateur investors to expect all their holdings to make them money.

One example of a long-term stinker is Insurance Australia Group Ltd (ASX: IAG).

The share price for this insurance giant has halved in the past 3 years. In fact, it has now dipped to a level not seen since August 2012.

Yes, you could have held this stock for almost a decade and it would be back to where it started.

But one fund has suggested that the company may finally be ready to break out of the slump:

‘Significant share price upside from current levels’

WAM Leaders Ltd (ASX: WLE) analyst Anna Milne told clients in a memo that it’s no wonder IAG has had a tough time of late.

“It has been a difficult few years for IAG, given the bushfire season in late 2019, the onset of coronavirus and resultant business interruption claims currently being disputed, and more recently, the severe flooding in New South Wales and Queensland this year.”

But macroeconomics is finally lining up to favour insurers, who enjoy higher returns on their capital when interest rates rise.

“In what is an extremely volatile environment, the insurance sector provides defensive characteristics at below market valuations,” Milne said.

“This, combined with compelling fundamentals and cautious market sentiment, suggests significant share price upside from current levels.”

And IAG will be no exception, the Wilson team feels.

“IAG’s share price is at close to 10-year lows and we believe it is poised to break out of this trough over the coming months,” said Milne.

“Underlying business momentum is starting to show, with premium rate hikes continuing to outpace claims while inflation pressures and higher bond yields further supporting earnings.”

There is also potential release of a $1.2 billion provision previously set aside for business interruption claims.

There’s some agreement with Wilson among the wider professional community.

According to CMC Markets, six out of 10 analysts are rating IAG shares as a strong buy. One out of the remaining four recommend it as a moderate buy.

The post The ASX 200 share ready to bounce from 10-year lows: expert appeared first on The Motley Fool Australia.

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More reading

• Why is the IAG share price smashing the ASX 200 today?
• 2 ‘quality defensive’ ASX shares to see out rising interest rates: Wilsons
• Why is the Suncorp share price cratering today?
• Is the IAG share price a defensive buy amid rising interest rates?
• Fundie reveals 3 ASX 200 shares with major pricing power to counter inflation

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 positions in and has recommended Insurance Australia 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 S&P/ASX 200 Index (ASX: XJO) unfortunately had another week to forget. Over the four days, the benchmark index recorded a 6.6% decline to end the period at 6,474.8 points.

The good news is that not all shares dropped with the market. Here’s why these were the best performers on the ASX 200 last week:

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price was the best performer on the ASX 200 last week with a 15.5% gain. This was the medical device company’s final swansong before being dumped out of the index at the next rebalance on Monday. With no news out of the company, it isn’t clear why its shares stormed higher. Though, as one of the most shorted shares on the ASX, it is possible that some short sellers were buying back shares to close positions.

EML Payments Ltd (ASX: EML)

The EML Payments share price was the next best performer with a gain of 9%. All of this gain was made on the final day of the week after a sudden and sharp rise on no news. However, a number of payments and BNPL companies saw their shares race higher on Friday. This could have been driven by bargain hunters swooping in after sizeable declines in recent weeks.

Ramelius Resources Limited (ASX: RMS)

The Ramelius Resources share price wasn’t far behind with a gain of 6%. This was driven by a rise in the gold price amid the market volatility caused by recession fears. It wasn’t just Ramelius that was rising. Recording similar gains were Newcrest Mining Ltd (ASX: NCM), Evolution Mining Ltd (ASX: EVN), St Barbara Ltd (ASX: SBM), and Silver Lake Resources Limited (ASX: SLR).

Carsales.Com Ltd (ASX: CAR)

The Carsales share price avoided the selloff and recorded a 4.2% gain last week. All this gain and more came on Friday after an inexplicably large gain. Though, with the auto listings company’s shares hitting a 52-week low earlier this week, some investors may believe they have been oversold.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

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More reading

• Novonix share price loses 20% in dire week for ASX 200 tech stocks
• 3 ASX 200 bank shares slide to 52-week lows on Friday
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why A2 Milk, Bubs, Evolution, and Zip shares are rising despite the selloff
• 3 ASX All Ordinaries shares defying today’s rout to surge higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments and POLYNOVO FPO. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended carsales.com 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 looking for some growth shares to add to your portfolio, then the two listed below could be worth a look.

Both of these ASX growth shares have been named as buys and tipped to climb materially higher from current levels. Here’s what analysts are saying about them:

Lovisa Holdings Limited (ASX: LOV)

The first ASX growth share to consider is fast-fashion jewellery retailer, Lovisa.

Thanks to the popularity of its offering and its global expansion plans, it has been tipped to grow strongly over the next decade.

For example, the team at Morgans even believe the company could “prove to be one of the biggest success stories in Australian retail.”

In light of this, its analysts have put an add rating and $24.00 price target on its shares. Based on the current Lovisa share price of $12.89, this implies potential upside of 86% for investors.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX growth share that could be in the buy zone is Treasury Wine. It is the wine giant behind a range of brands such as 19 Crimes, Penfolds, and Wolf Blass.

The last few years have been difficult for Treasury Wine and its earnings have taken a major hit. This was driven by COVID-19 headwinds and the company’s exile from China.

The good news is that things are looking up now for the wine giant. This is thanks largely to its success in the North American market. In fact, the team at Morgans believe the “foundations are now in place for TWE to deliver strong double-digit growth from 2H22 over the next few years.”

As a result, its analysts have put an add rating and $13.93 price target on the company’s shares. Based on the current Treasury Wine share price of $10.88, this implies potential upside of 28% for investors.

The post Experts name 2 ASX growth shares to buy with major upside potential appeared first on The Motley Fool Australia.

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More reading

• 2 blue chip ASX 200 shares Morgans rates as buys
• Despite recent volatility, brokers are bullish on the Treasury Wine share price
• Analysts are tipping these ASX growth shares as buys
• 3 ASX All Ordinaries shares that defied Thursday’s slump to leap higher
• This ASX 300 retail share could grow its global store network by 260%: fundie

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 Lovisa Holdings Ltd and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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