Tag: Motley Fool

The Reject Shop Ltd (ASX: TRS) share price is soaring today amid a new appointment by the company.

The retail company’s shares are currently swapping hands at $3.42, a 20% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is rising 0.53% today.

So what news is driving the Reject Shop share price higher today?

New CEO

The Reject Shop has named Phillip Bishop as the company’s new CEO. He will commence in the role on 11 July and will receive $650,000 per year.

Bishop has 30 years of experience in retail, including senior roles at Bunnings and Office Works.

The Reject Shop noted Bishop has delivered sustained growth in these roles through his focus on the needs of customers.

The company said it is now “well positioned” with a lower cost base and talented senior leadership team.

Commenting on the news, chairman Steven Fisher said: “As the company transitions into the ‘grow’ phase of the turnaround strategy, I am confident that Phil is the right person to lead the company.”

In response, Bishop thanked the board for the appointment and outlined his growth plans for the company. He said:

In my view, there is a significant opportunity to grow The Reject Shop through better understanding its customers, continuing to evolve the product offering and continuing to expand the store network.

Capital management update

The Reject Shop share price could also be gaining on the back of the company’s capital management update.

It said it is continuing to trade consistently with management expectations and broker consensus in FY22. In financial results delivered in February, the Reject Shop did not provide a specific guidance for FY22. However, the company outlined plans to open 15 new stores and close four.

The company plans to deliver FY22 results in late August after the completion of an audit.

The Reject Shop is also looking into conducting an on-market share buyback. If the board proceeds with this, shareholders will be informed next month or in August.

Reject Shop share price snapshot

The Reject shop share price has dived 39% in the past year, while it is falling nearly 54% year to date.

For perspective, the benchmark ASX 200 has descended 10% in a year.

In the past month, the company’s shares have fallen more than 9%, while they are down 5% in the past week.

Reject shop has a market capitalisation of about $125 million based on the current share price.

The post Why is the Reject Shop share price powering ahead 20% today? appeared first on The Motley Fool Australia.

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More reading

• 2 buy-rated small cap ASX shares that this fund manager likes

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Appen Ltd (ASX: APX) share price is skyrocketing after a seven-session losing streak.

The stock is recovering alongside the broader ASX tech sector, which is also regaining lost ground on Thursday.

At the time of writing, the Appen share price is $5.70, 11.76% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.41%. The S&P/ASX 200 Information Technology Index (ASX: XIJ) is up 2.31%.

Let’s take a closer look at what’s going on with the artificial intelligence data developer and its tech peers.

Appen share price lifts after reaching a near five-year low

The Appen share price is bouncing back from a near five-year low in yesterday’s trade.

The stock tumbled to $5.10 in intraday trade on Wednesday – the lowest it’s been since 2017.

Today, it’s the best-performing ASX 200 share. It’s beating the 6%-plus gains posted by EML Payments Ltd (ASX: EML) and Pilbara Minerals Ltd (ASX: PLS).

In the ASX 200 tech sector, Appen’s performance is shadowed by NextDC Ltd (ASX: NXT). Its stock is currently up 5.7%.

The tech index is the best performer out of all 11 ASX 200 sectors today. Looking to the broader tech sector, the S&P/ASX All Technology Index (ASX: XTX) is also up, gaining 1.9%.

This comes after the tech-heavy NASDAQ Composite (INDEXNASDAQ: .IXIC) lifted 2.5% overnight amid the United States’ biggest rate hike in decades.

The nation’s Federal Reserve lifted rates by 0.75% on Wednesday (US time). However, the Fed assured that future hikes of such magnitude would be rare and the economy could absorb the blow.

Today’s gains included, the Appen share price is nearly half of what it was at the start of 2022. It has also slipped nearly 58% since this time last year.

The post Appen share price rebounds 12%, topping ASX 200 gainers appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: BHP’s NSW coal update, Link takeover on the rocks
• Westpac says consumer confidence is falling. Could this actually be good news?
• Why ASX 200 shares are charging higher following super-sized US Fed rate hike
• 5 things to watch on the ASX 200 on Thursday
• The Santos share price is up 27% this year. Is it too late to buy?

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 Appen Ltd and EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. 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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Zip Co Ltd (ASX: ZIP) shares are up 6% in early afternoon trade, well outpacing the 0.54% gains posted by the All Ordinaries Index (ASX: XAO) at this same time.

Zip shares closed yesterday at 50 cents and are currently trading for 53 cents.

Today’s gain will come as welcome news to shareholders, who have watched the Zip share price crater 88% so far in 2022. And that includes the intraday lift.

Zip shares join wider BNPL rout

Zip shares aren’t the only ones getting smashed this year.

Rival ASX buy now, pay later (BNPL) share Sezzle Inc (ASX: SZL) has tumbled 89% year-to-date. And dual-listed, global payments giant Block Inc (ASX: SQ2) – which acquired Afterpay and began trading on the ASX in January – has dropped 49% since 20 January.

Zip shares were one of the top performers on the ASX during the first year of the COVID-19 pandemic. Following the market low on 20 March 2020, the Zip share price soared an eye-popping 872% over the next 11 months through to 19 February 2021.

This came as the RBA slashed interest rates and the federal government launched JobKeeper, spurring consumer spending and spiking demand for paying by instalments.

But now that rates are ratcheting higher and the government payments have dried up, a lot of those customers are finding they can’t make their repayments. Interest-free or not.

Topping that off, the industry is finding that its moats are easily breached by some of the biggest companies on Earth.

Like global technology giant Apple Inc (NASDAQ: AAPL).

Last week Apple reported it was rolling out its own BNPL service, an offering the company had hinted at for some time. Apple Pay Later comes with no interest rates and no late fees and will work for any merchants that already accept Apple Pay.

ASX BNPL shares plagued by bad debts

With international competition heating up and many customers struggling to make their repayments, investors have been selling Zip shares and those of its BNPL rivals.

Addressing the debt issues, Andrew Brown, a fund manager at East72, said (courtesy of The Age):

The bad debt experience is horrendous. The simple fact of life is this: BNPL business as a stand-alone means that you are going to attract a large number of people who are incapable of paying their money back, particularly if you don’t have robust credit checks.

Zip chair Diane Smith-Gander admitted last month that the BNPL sector had broadly been blindsided by the new environment of spiking inflation and rising interest rates:

The industry as a whole, which has seen bad debts spike, really missed that moment. And we are now going to have to dig our way out of that. In the industry there was a bit of a feeling that well these are small amounts of money, so the payback for recovery and collection activity is not the same as if you’re collecting mortgage that’s gone bad.

Grant Halverson, CEO of consultancy McLean Roche, doesn’t paint a rosy picture for the future of Zip shares and the wider industry.

According to Halverson (quoted by The Age):

With high losses and with very low margins, you will never make a profit, no matter how much growth is achieved. BNPL apps also enjoyed record-low interest rates, which is now turning and makes any path to profit impossible – basically every dollar of sales goes straight to losses.

Just how much bad debt are we talking about?

According to data from McLean Roche, the bad debt write-off for Commonwealth Bank of Australia (ASX: CBA)’s credit card accounts 180 days in arrears is 0.31%. For Zip, bad debts stand at 9.7%.

How have Zip shares been tracking longer term?

Down 93% over the past 12 months, you’d have to have bought Zip shares in April 2016 to be sitting on any gains today.

If you’d bought shares in December 2009, you’d be sitting on a 70% loss.

The post Is the ‘path to profit impossible’ for Zip shares? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Block and Zip crash amid market selloff
• Own Zip shares? CEO warned co-founder 8 months ago, ‘There are some clouds gathering on the horizon’ after Morgan Stanley meeting
• Zip share price crashes 21% to new multi-year low
• Wall Street tumbles into bear market. What does that mean for ASX 200 shares?
• Waiting to start investing in ASX shares? Today could be a brilliant time to do it

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Block, Inc., and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Apple. 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 

Cryptocurrency markets are having another wild day and there have been ups and downs along the way. Values dropped early in trading on Wednesday only to recover slightly in the morning. 

As of 10:40 a.m. ET, Bitcoin (CRYPTO: BTC) had traded in a range of $22,779 to as low as $20,071 in the last 24 hours and is currently down 3.9% over that time to $21,247. Ethereum (CRYPTO: ETH) was on an even wilder ride, seeing a high of $1,266 and a low of $1,013, but it’s down 7.3% in the last 24 hours to $1,113. Dogecoin (CRYPTO: DOGE) traded as high as $0.0574 and as low as $0.0503 and is currently down 4% at $0.0541. 

So what 

There are a number of factors impacting crypto trading and most of it is bad news. The Celsius Network continues to be in trouble and users still have frozen accounts. That’s causing potential liquidations of leveraged positions and it’s unclear what the solution is. 

At the same time, crypto fund Three Arrows Capital appears to be in trouble as its leveraged positions have come under fire. The company’s founder said the firm is “working this out” but that hasn’t given much confidence to the crypto market. 

In general, leveraged investments in cryptocurrencies have backfired and traders are having trouble unwinding positions. And there’s far more risk in the system than many people thought, sometimes in places they didn’t know to look. 

Now what 

It’s hard to argue against this being a “crypto winter” in many ways and I think leverage once again is the cause of a lot of big losses. The problem in cryptocurrency is that it doesn’t have the same regulations as the banking industry to keep individual investors safe or firms from taking positions they can’t unwind. Right now, those two factors are coming to a head. 

I’m still bullish on cryptocurrency and Web3 in general as a tool for innovation and disruption in technology, but crypto becoming a trading tool with billions of dollars in leverage has led to unintended consequences. Now, the market is seeing massive losses and even retail investors don’t know when the selling will stop. 

I wouldn’t be buying the dip unless you have a very long-term time horizon and are willing to hold until this market turns around. Crypto will be back, but might be under stricter rules around the world and not every cryptocurrency will survive. For the sake of the industry’s health, this shakeout might be a good thing in the long run. 

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

The post Why Bitcoin, Ethereum, and Dogecoin dropped and popped in the last 24 hours appeared first on The Motley Fool Australia.

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More reading

• What is the realised Bitcoin price and why does it matter?
• 3 reasons Bitcoin, Ethereum and Solana just hit their lowest levels this year
• Can the upcoming merge save the Ethereum price from further destruction?
• The Ethereum price just plummeted 17%. What’s going on?
• Why is the Bitcoin price crashing 16% today?

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

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

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ASX growth shares offering substantial upside could be compelling ideas to look at this month, according to investment experts.

Many business valuations are now cheaper this year after heavy declines amid concerns about inflation and interest rates.

A lower price may not necessarily make an ASX share more worthwhile buying, but it could be a good idea to think about investments that are rated as buys right now.

The below two shares are not the most well known, but they are growing at an attractive rate which experts like.

NextDC Ltd (ASX: NXT)

NextDC describes itself as Asia’s most innovative data centre as a service provider. It says it’s building the infrastructure platform for the digital economy, “delivering the critical power, security, and connectivity for global cloud computing providers, enterprise, and government”.

One of the brokers that rates NextDC as a buy is Macquarie, with a price target of $13.90. That implies a potential rise of more than 30% on the current NextDC share price of $10.36.

The broker thinks NextDC has an attractive addressable market in both metropolitan locations and regional areas.

The NextDC FY22 half-year result was better than what Macquarie had been expecting. NextDC’s underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 29% to $85 million, while earnings before interest and tax (EBIT) jumped 59% to $31.3 million.

The ASX growth share increased its underlying EBITDA guidance range when it released its HY22 result to $163 million to $167 million, up from $160 million to $165 million.

NextDC’s CEO and managing director Craig Scroggie said:

NextDC is in an outstanding position to take advantage of current and future customer opportunities and to press its advantage into new regions and edge locations.

Superloop Ltd (ASX: SLC)

Superloop says its purpose is to “enable better internet for Australian homes and businesses, by enabling challenger retail brands (including Superloop and Exetel brands) to take a larger share of the market, leveraging Superloop’s infrastructure-on-demand platform”.

Its three segments of the market — consumer, business, and wholesale — all leverage the company’s investments in physical infrastructure assets that include fibre, subsea cables, and fixed wireless, as well as its software platforms.

Morgans rates the ASX growth share as a buy, with a price target of $1.37. That implies the Superloop share price — currently 69 cents — could double over the next year.

Last month, Superloop announced it was acquiring Acurus, a white label and technology business, allowing Superloop to expand its “white label broadband relationships and profitable growth in its subscriber base”.

The Acurus business provides technology services to businesses such as Energy Australia, Wesfarmers Ltd (ASX: WES)’s Officeworks, and Bakers delight. The initial cost for this deal is $15 million.

Superloop also noted the ongoing organic growth of the business.

In the fourth months to 30 April 2022, Superloop said it achieved net subscriber growth of 7,300 in the consumer division, compared to 6,100 in the six months to 31 December 2021.

The ASX growth share also noted that it has 19,300 subscribers on its Connect platform, up from 11,600 at 31 December 2021.

Superloop is expecting to generate EBITDA of between $23 million and $25 million, up from $18.2 million in FY21.

The post 2 ASX growth shares to buy this month: experts appeared first on The Motley Fool Australia.

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More reading

• Analysts name 2 ASX growth shares to buy with huge upside potential
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• Why ALS, Costa, Superloop, and Worley shares are charging higher
• Analysts name 2 ASX growth shares to buy now

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 SUPERLOOP FPO. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited. 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 Core Lithium Ltd (ASX: CXO) share price is rebounding today following two consecutive days of being heavily sold off.

Over Tuesday and Wednesday, the lithium producer’s shares fell 7.3% while the S&P/ASX All Ordinaries Index (ASX: XAO) dipped 5.1%.

At the time of writing, Core Lithium shares are powering ahead by 6.09% to $1.22.

Core Lithium shares recover lost ground

ASX investors are bidding up Core Lithium shares despite no announcements from the company today.

With lithium prices stable, it’s likely that bargain hunters are swooping in after the recent share price fall.

Confidence in the lithium sector took a dive this month on the back of a Goldman Sachs’ analysis.

The global investment powerhouse released a bearish report forecasting the price of lithium will tumble to US$16,000 in 2023.

This sent shockwaves throughout the battery metals market and made ASX investors panic.

A number of lithium companies pushed back on the report saying they believe lithium demand is here to stay.

It’s no secret that Core Lithium will need to play a key role in meeting the future lithium supply gap. This is expected to grow rapidly as the demand for electric vehicles and renewable energy ramps up over the next decade.

The company has been developing its wholly-owned Finniss Lithium Project.

Last month, Core Lithium provided an update advising it will have its first production of lithium concentrate in Q4 2022.

Once online, the Finniss Lithium Project will be the first Australian lithium-producing mine outside of Western Australia.

The Australian Government has highlighted how critical it is to have this capability within the country.

Core Lithium share price summary

Regardless of the turbulent month, the Core Lithium share price has soared by 388% in the past 12 months.

Year-to-date, its shares are up 94%.

Core Lithium presides a market capitalisation of $1.99 billion and has approximately 1.73 billion shares outstanding.

The post Why is the Core Lithium share price surging 6% on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Lake Resources share price defies rout to leap 14%
• 3 ASX All Ordinaries shares that have surged 300% in the past year
• Core Lithium share price slides 7% amid market-wide rout
• Which ASX lithium shares are producing and which are not?
• Brokers say lithium price could halve by 2023 but Core Lithium disagrees. Here’s why

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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. The benchmark index is currently up 0.4% to 6,625.7 points.

Here’s what is happening on the ASX 200 today:

Link shares sink

The Link Administration Holdings Ltd (ASX: LNK) share price is falling hard on Thursday. Investors have been selling the administration company’s shares for a couple of reasons. One is news of legal action against it and the other is the prospect of its takeover collapsing. The latter has been driven by ACCC concerns over the deal. And with the Link share price now trading 35% below the offer price, it seems as though the market believes the deal is now dead.

BHP to retain NSW coal assets

The BHP Group Ltd (ASX: BHP) share price is under pressure today after the mining giant revealed that it has failed to offload its New South Wales based coal operations. The Big Australian will instead retain the operations and aims to keep them running until 2030. After which, BHP will spend 10 to 15 years and US$700 million rehabilitating the land.

Eagers Automotive’s $250 million buyback

The Eagers Automotive Ltd (ASX: APE) share price is racing higher today. This follows news that the auto retailer plans to buy back up to 10% of its shares on-market over the next 12 months. The value of this buyback equates to approximately $250 million based on the current Eagers Automotive share price. Management said that this reflects the board’s prudent focus on active capital management and is a testament to the company’s strong balance sheet.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Appen Ltd (ASX: APX) share price with an 11% gain. This is despite there being no news out of the artificial intelligence data services company. Going the other way, the worst performer has been the Link share price with a 10% decline following its aforementioned disappointing updates.

The post ASX 200 midday update: BHP’s NSW coal update, Link takeover on the rocks appeared first on The Motley Fool Australia.

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More reading

• Why I think the BHP share price is a good buy for the long term
• Westpac says consumer confidence is falling. Could this actually be good news?
• BHP share price pushes higher despite coal sale fail
• Double whammy: Link share price sinks 9% amid ACCC probe, litigation news
• Why ASX 200 shares are charging higher following super-sized US Fed rate hike

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 Appen Ltd and Link Administration Holdings Ltd. 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

On one of the better days for the stock market in recent times, Amazon (NASDAQ: AMZN) was a standout. On a general resurgence in tech stocks and a very positive new analyst note, the giant online retailer’s stock zoomed more than 5% higher on Wednesday, easily topping the 1.5% gain of the bellwether S&P 500 index.

So what

The tech rally was certainly a tailwind for Amazon at the end of the day, but investors were probably more encouraged by that research note. It was written by JPMorgan Chase analyst Doug Anmuth, who shared a very heartening update on the company’s Prime loyalty program.

Following what he calls a “deep dive” into Prime’s present and future, Anmuth came up with a new estimate of the program’s value to its subscribers. All told, according to his calculations, Prime membership confers roughly $1,100 in annual benefits, such as free shipping and savings on items like drug prescriptions. This makes it quite the compelling value proposition even at the recently increased rate of $139 per year.

It also makes it an increasingly more attractive add-on for Amazon customers. Again according to his estimates, Anmuth says those yearly benefits totaled around $1,000 in 2020, and only approximately $544 in 2016.

Now what

Not surprisingly, the prognosticator is very bullish on Amazon stock. With his new take, he’s maintaining his overweight (buy) recommendation on it, at a price target of $200 per share. This level is nearly double that of the stock’s most recent closing price, even after Wednesday’s pop. 

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

The post Why Amazon stock crushed the market today appeared first on The Motley Fool Australia.

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More reading

• 2 Warren Buffett stocks to buy and hold forever
• Amazon Just Split Its Stock: Here’s What Comes Next
• Better buy: Amazon vs. Alibaba
• Amazon stock split is complete. Time to buy the stock?
• Amazon’s stock split has taken effect. Now what?

Eric Volkman has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The BHP Group Ltd (ASX: BHP) share price has been volatile over the last year. But I think it’s shaping up to be a long-term opportunity due to its portfolio of commodities.

BHP is one of the biggest resource businesses in the world, though it’s now a bit smaller after divesting its oil and gas business to Woodside Energy Group Ltd (ASX: WDS).

Oil and gas still have their place in the world, particularly in the current global energy situation. However, eventually, there may be a transition away from fossil fuels, so it was probably a good idea for BHP to divest while prices are good for those commodities.

I do like the look of what’s left within the ASX mining share’s commodity portfolio and this is what attracts me to BHP’s share price as a long-term idea.

Decarbonisation

Many countries and governments around the world are working on decarbonising and electrifying.

As BHP says, it’s “actively managing” its portfolio for long-term value creation through the cycle.

There are three ‘future-facing’ commodities that BHP is focused on – copper, nickel, and potash.

Media group Reuters reported on comments made by BHP’s chief commercial officer, Vandita Pant, at the FT Commodities Asia Summit late last year. She said:

Some of the modelling that we have done showed that in, let’s say a decarbonised world … the world will need almost double the copper in the next 30 years than in the past 30.

And for a commodity like nickel, that quadruples. So four times nickel needed for the next 30 years than the past 30 years and all to be done as sustainably as possible.

Why are copper and nickel so important for decarbonisation? Nickel is an important commodity for use in electric vehicle batteries. Copper is used for various electrical wiring including inside the electrical vehicle, the charging stations and other renewable energy infrastructure, as noted by Bloomberg.

In terms of its copper resources, BHP says it has the “largest resource endowment of any company globally, and amongst the highest average grade”.

BHP also says it has the second-largest nickel sulphide resource with around 90% of nickel metal sales to the electric vehicle supply chain.

I think BHP has built a very useful commodity portfolio which can help the BHP share price for many years to come.

Potash

The Jansen project in Canada is a key focus for growth for the business. Potash is seen as a lower-emission fertiliser.

BHP says there is significant expansion potential to support up to a century of production in the world’s “best” potash basin.

Management calls Jansen a world-class asset which increases the diversification of the business, customer base and operating footprint.

The demand for potash is expected to grow thanks to “reliable base demand leveraged by population growth and higher living standards”.

BHP believes Jansen will enter the market at the bottom of the global cost curve, delivering 4.35 million tonnes per annum.

The company points to structural competitive advantages for Jansen such as using around 60% less equipment to deliver lower costs, a shaft designed to be 25% to 50% larger than competitors (supporting low capital intensity expansion options), leading equipment and material handling systems, and a continuous, automated loading system.

Final thoughts on the BHP share price

BHP is certainly not a hidden gem. It’s the biggest business on the ASX. But, I think its exposure to commodities with growth potential is attractive for the long term, while iron ore generates big cash flow and dividends in the short term.

The post Why I think the BHP share price is a good buy for the long term appeared first on The Motley Fool Australia.

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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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The Treasury Wine Estates Ltd (ASX: TWE) share price has whipsawed in 2022, trading as high as $13.20 and as low as $10.54 in that time.

It has danced between $11 and $12 from March to May and it’s down 11.8% this year to date (below). It’s been trending down since 31 May and today, the Treasury Wine share price is $10.88 — down 0.37% for the day so far.

Analysts stacked on the buy side

Over the past 12 months, the number of buy calls on Treasury Wine has crept upwards. Currently, 58% of brokers covering the stock have it rated as a buy, according to Bloomberg data.

That’s crept up from 33% this time last year.

Another 37% have it rated a hold — that number reducing from roughly 46% a year ago. In terms of price targets, an Evans and Partners note from November 2021 lists a valuation for Treasury Wine of $14.60.

However, a June note from Credit Suisse has it valued at $13.50 per share. Jefferies valued it at $14.50 apiece earlier this month as well.

Macquarie and Goldman Sachs are both neutral at $12.55 and $11.90 respectively.

Those at Barrenjoey aren’t a fan. The team rates the Treasury Wine share price underweight on a $9.50 price objective in May. This is the only sell rating.

The consensus price target is $13.17 from this list. That suggests about a 20% potential upside.

Treasury Wine share price snapshot

In the past 12 months, Treasury Wine stock has slipped about 9.5% into the red. From its 52-week high, it has slipped 18%.

That means it must gain about 23% to return to its former highs. Moreover, there’s no telling how long this volatility will last.

The post Despite recent volatility, brokers are bullish on the Treasury Wine share price appeared first on The Motley Fool Australia.

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More reading

• Is it time to buy A2 Milk and Treasury Wines for better China relations?
• The Treasury Wine share price has leapt 6% in 3 weeks. Why this top broker is tipping more gains
• Top broker names 2 of the best ASX shares to buy in June
• Experts name 2 ASX 200 shares with high quality management teams to buy
• These 3 ASX shares have plunged this year: Expert reveals what to do

Motley Fool contributor Zach Bristow 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 Macquarie Group Limited 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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