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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.

Electric vehicles (EVs) will be one of the large secular growth stories of this decade. BloombergNEF researchers estimate that annual unit volumes for plug-in EVs will grow from 6.6 million in 2021 to 20.6 million in 2025.

Considering how much a new car costs, this is a trillion-dollar revenue opportunity for companies to go after.

That is why so many automakers — from EV pioneer Tesla (NASDAQ: TSLA) to upstarts like Rivian to legacy automakers like Ford (NYSE: F), Volkswagen, and Toyota — are investing so much money in their EV product lines.

But which stocks among these automakers provide the best investment opportunity at current prices? Let’s look at two key players — Tesla and Ford — and identify which stock looks most likely to 5x in the shortest time period.

Tesla: The EV pioneer

You probably know Tesla as the company that has driven the EV revolution over the past 10 years. With four models currently for sale and a few more in development, Tesla is the EV leader in many important markets around the world.

In 2021, the company delivered 936,000 vehicles to customers and has grown its production capacity at a rapid rate over the past decade.

Last year, the company reported $53.8 billion in revenue and $6.5 billion in operating income. With $17 billion in cash shoring up its balance sheet, investors are betting that Tesla can capture a good chunk of the projected bump in annual EV sales, driving its annual deliveries into the millions.

Tesla is also making bets on self-driving technology, solar energy, and battery storage deployments. However, it is difficult to estimate how much financial value these segments will provide considering solar/battery storage has negative gross margin right now, as well as the uncertainty around full self-driving technology, which many researchers think is years and years away. For now, it is probably smart for investors to not include these divisions when valuing Tesla stock.

As of this writing, Tesla has a market cap of $730 billion, one of the largest in the world. Tesla stock has a trailing price-to-sales ratio around 14 and investors are already pricing in a lot of growth over the next few years.

In order for the stock to 5x to a market cap of $3.65 trillion, Tesla would need to greatly exceed investors’ high expectations.

Ford: Making the EV transition

Unlike Tesla, Ford is a legacy automaker that still makes the majority of its sales from cars with internal combustion engines (ICEs).

Over the next decade, the company plans to invest heavily in EV operations, with $50 billion in planned spending from now until 2026. According to management, this will enable the company to get to 600,000 in annual EV manufacturing capacity next year and 2 million by 2026.

Looking at Tesla’s financials as a comparison, this could translate into over $100 billion in EV sales for Ford if it can execute on these objectives.

To do so, Ford has a robust lineup of EVs, including the Mustang Mach-E, F-150 Lightning, and E-Transit commercial van. There is a lot of uncertainty, though, as the company has not gotten many vehicles out on the road.

But like with Tesla and the other automotive manufacturers, with so many new sales to go after, there is a gigantic financial opportunity here.

As of this writing, Ford has a market cap of $54 billion and $29 billion in cash and equivalents. In order for the stock to 5x, investors would need to value Ford at a market cap of $270 billion, or less than 10% of what Tesla would need to be valued at in order to achieve the same jump.

A matter of math

I think it is clear that Ford is more likely than Tesla to 5x, simply because Tesla’s stock is valued so richly.

If Ford is able to hit $200 billion in annual sales after ramping up EV production and raise its operating margin to 15% (which is close to Tesla’s), the company would be generating $30 billion in operating income by 2026.

Using a typical earnings multiple for automakers of 10, that equates to a market cap of $300 billion, which clears the 5x hurdle.

Now let’s do the same calculation for Tesla. In order to hit an earnings multiple of 10 on a market cap of $3.65 trillion (Tesla stock’s 5x hurdle), the company would need to be doing $365 billion in operating income a year.

Assuming an operating margin of 15%, this would require over $2.4 trillion in annual sales. Achieving a 5x jump does not seem reasonable unless you think investors will perpetually value Tesla at an earnings multiple much higher than the rest of the industry. 

I don’t think either Ford or Tesla will 5x within the next five years. But if I had to bet on one stock doing this, it would be Ford, simply because of the starting valuation.

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

The post More likely to 5x first: Tesla vs. Ford? appeared first on The Motley Fool Australia.

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Brett Schafer 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 Tesla and Volkswagen AG. 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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The lithium industry has been running cold in 2022 after being the hottest part of the market in 2021.

Concerns over a potential sharp decline in the price of the battery making ingredient in the near future have been weighing heavily on sentiment.

This is because there are many developers and explorers on the Australian share market that could miss out on the sky-high prices of today and eventually commence operations when prices are much lower. This would have a significant impact on their profitability.

And as the market is a forward-looking machine, these lower future profits impact the valuation of a company today.

Luckily, some ASX lithium shares are already producing the white metal and are benefiting from record-breaking prices.

Which lithium shares are already producing?

Allkem Ltd (ASX: AKE), Mineral Resources Limited (ASX: MIN), and Pilbara Minerals Ltd (ASX: PLS) are already producing lithium and have plans to grow their output in the future.

For example, Allkem is planning to increase its lithium production three-fold by 2026 and maintain a 10% share of the global lithium market over the next decade.

Whereas Mineral Resources recently agreed to accelerate the resumption of production from Train 2 at Wodgina. The first spodumene concentrate from this train is expected in July with a nameplate capacity of 250,000 dry metric tonnes.

What about the rest?

There are a number of developers and explorers on the ASX, which are still a little way off producing lithium.

• Liontown Resources Limited (ASX: LTR) is targeting first lithium concentrate production in 2024.
• Piedmont Lithium Inc (ASX: PLL) is aiming for the first half of 2023.
• Sayona Mining Ltd (ASX: SYA) is targeting production during the first quarter of 2023.
• Vulcan Energy Resources Ltd (ASX: VUL) is planning to construct its first commercial plant in 2024.

Finally, the next ASX lithium share that is likely to be producing is Core Lithium Ltd (ASX: CXO). In fact, it proudly labels itself as “Australia’s next lithium producer.” It is targeting production at the Finniss Project by the end of 2022.

What should investors do before investing in lithium?

Valuations arguably got out of control last year with investors valuing companies as if lithium prices would stay at record levels forever. So, just because a share is down 50% from its high doesn’t necessarily mean it is a bargain now.

If you’re looking to invest in lithium explorers, you might want to consider just how profitable (or not) they will be if battery material prices do tumble as predicted by analysts.

The post Which ASX lithium shares are producing and which are not? appeared first on The Motley Fool Australia.

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• Why is the Vulcan Energy share price tumbling 6% today?
• Here are the 3 most traded ASX 200 shares on Friday
• Down 26% in June, is it time to dig into Pilbara Minerals shares?
• The Liontown share price has tumbled 20% so far in June. What’s next?
• Is it too late to buy ASX lithium shares?

Motley Fool contributor James Mickleboro has positions in Allkem 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 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 BetaShares Global Banks ETF (ASX: BNKS) is one of those ASX exchange-traded funds (ETFs) that seems to fly under the radar. Chances are many ASX investors haven’t even heard of BNKS, despite the fact it has been around since 2016.

But in this high inflation, rising interest rate world, bank shares have seen a spike in interest for their supposed inflation-resistant properties. So in light of this, now could be a good time to check out what’s under the hood of this ETF.

The BetaShares Global Banks ETF does pretty much what you would expect it to do. According to the provider, this ETF aims to hold “a diversified portfolio of the world’s largest banks in a single ASX trade”.

BNKS holds 60 different bank shares sourced from around the world, although not Australia, which the provider actively excludes. So don’t expect to see the likes of Commonwealth Bank of Australia (ASX: CBA) or National Australia Bank Ltd (ASX: NAB) here.

What’s under the hood of the BetaShare Global Banks ETF?

Instead, it has significant exposure to US banks, which make up almost 40% of the total BNKS portfolio. Other significant contributors include Canada (18.1%), Britain (7.8%), China (6.4%), and Japan (5.2%).

Of the BetaSahres Global Banks ETF’s 60 bank shares, here are the top 10 that appear in its portfolio as it currently stands:

1. JPMorgan Chase & Co with a portfolio weighting of 8%
2. Bank of America Corp with a weighting of 7.1%
3. Wells Fargo & Co with a weighting of 6%
4. Royal Bank of Canada with a weighting of 5.4%
5. The Toronto-Dominion Bank with a weighting of 4.9%
6. HSBC Holdings plc with a weighting of 4.1%
7. Citigroup Inc with a weighting of 3.7%
8. The Bank of Nova Scotia with a weighting of 2.9%
9. Mitsubishi UFJ Financial Group with a weighting of 2.8%
10. China Construction Bank Corp with a weighting of 2.6%

So certainly a mixed bag there.

According to BetaShares, this ETF currently offers a trailing 12-month dividend distribution yield of 4%, reflecting the traditionally high levels of dividends that bank shares pay out (a phenomenon not confined to the ASX).

However, this ETF’s performance has hardly set the world on fire in recent years. As of 31 May, BNKS has returned -3.57% over the preceding 12 months. It has averaged a return of 3.71% per annum over the past three years and 2.23% over the past five.  By contrast, an ASX index ETF like the Vanguard Australian Shares Index ETF (ASX: VAS) has averaged 8.06% per annum over the past three years and 8.95% over the past five.

The BetaShares Global Banks ETF charges a management fee of 0.57% per annum.

The post Own the BetaShares Global Banks ETF? Here’s what you’re invested in appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in JPMorgan Chase and National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Banks ETF – Currency Hedged. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended HSBC Holdings. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

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

Jumbo Interactive Ltd (ASX: JIN)

According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target on this lottery ticket seller’s shares to $18.30. This follows Jumbo’s investor day, which the broker came away from feeling very positive on its growth outlook. Morgans highlights that the company has significant growth opportunities in the US and through the expansion of its SaaS business in the profitable charity sector. The Jumbo share price ended the week at $14.49.

National Australia Bank Ltd (ASX: NAB)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $34.00 price target on this banking giant’s shares. Macquarie doesn’t appear concerned by the Reserve Bank’s rate hikes and sees the recent sector selloff as a buying opportunity. The broker also highlights that the banks could benefit from “lazy” term deposit customers that don’t switch to better offers. It feels these could provide a margin boost over the next 12 months. The NAB share price was fetching $28.06 at Friday’s close.

Xero Limited (ASX: XRO)

Analysts at Goldman Sachs have retained their buy rating and $118.00 price target on this cloud accounting platform provider’s shares. According to the note, the broker remains confident that Xero will be able to execute on its subscription price increases while preserving its existing subscriber base. It notes that the company has a strong track record in putting through increases while driving churn lower. The Xero share price ended the week at $82.93.

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

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• Waiting to start investing in ASX shares? Today could be a brilliant time to do it
• 3 ASX 200 shares defying Friday’s falls to leap higher
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• Why Breville, Bubs, Terracom, and Xero shares are pushing higher today
• The NAB share price is down 10% this week: Macquarie says it’s a buy

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 Jumbo Interactive Limited and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Jumbo Interactive 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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There is a lot of volatility on the ASX share market right now. But that doesn’t need to be a negative for those that are waiting to start investing.

At the moment, there seem to be weekly headlines about the latest declines on the stock market. It’s a bit painful for investors with a lot of money already in the market. They may be comforted by looking back at other crashes in history like the GFC and COVID-19 and seeing that, eventually, the share market stopped falling and started a recovery.

But what about investors that don’t have any money in the ASX share market? It could be a really good time to consider starting.

Why now could be an opportune time to invest

Share prices move all the time. Every day, one share goes up and another one goes down. Over a relatively short amount of time, businesses can move significantly up and down.

For example, this week, the Commonwealth Bank of Australia (ASX: CBA) share price has fallen by around 10%.

In the last month, the Zip Co Ltd (ASX: ZIP) share price has fallen by around 40%, and in 2022 it has dropped 85%. I’m not saying those two ASX shares are buys today, just pointing out the big moves.

Ultimately, investing is about making returns. We can’t control what share prices do each week or each month. But, we can control when we invest and the price we buy shares at.

If I’m in a supermarket, I want to buy items for a good price. I wouldn’t enjoy paying $11 for a lettuce. I have similar thoughts when it comes to ASX shares. I’d rather buy ASX shares when they’re cheaper than at a high price. Yet some investors become less interested, or more fearful, to invest when prices drop.

How much cheaper are ASX shares?

The S&P/ASX 200 Index (ASX: XJO) is down close to 10% in 2022. However, the ASX 200 is dominated by miners and banks, which have cushioned the index from the decline.

There are plenty of other ASX shares that have suffered much heavier declines.

For example, the Xero Limited (ASX: XRO) share price has dropped by 44% this year. If Xero shares were to go back to where they were at the start of the year, that would be a rise of 80%. But, it’s impossible to say how long it will take investor sentiment to return for many ASX growth shares.

Another example is the Temple & Webster Group Ltd (ASX: TPW) share price, which has fallen by 65% in 2022. A third example is the Adore Beauty Group Ltd (ASX: ABY) share price, which has dropped more than 70% in 2022.

A lower price doesn’t mean that they’ll automatically jump back up. For some stocks that have declined, it could take months or years to recover. A number of them may never get back to the former level. It’s possible that some may recover quickly.

Some investors may like to consider investing in exchange-traded funds (ETFs), which allow people to invest in a big group of shares at the same time. That way, investors don’t need to identify particular businesses to do well; they can benefit over the long term from a diversified portfolio. Diversification can reduce investment risks.

Two of the more popular ETFs are Vanguard Msci Index International Shares ETF (ASX: VGS) and iShares S&P 500 ETF (ASX: IVV).

Foolish takeaway

It’s possible that share prices could go lower from here.

But, investing should be about the long term, not just trying to pick when the ASX share market is going to hit the bottom.

If ASX 200 shares were to deliver the historical average return of around 10% per year over the next five or 10 years, then investing at today’s prices could be a good call, but my crystal ball isn’t working right now to tell me if today is the best price.

The post Waiting to start investing in ASX shares? Today could be a brilliant time to do it appeared first on The Motley Fool Australia.

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• Here’s the CBA dividend forecast through to 2024
• These were the worst performing ASX 200 shares last week
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• ASX 200 has its worst week in two years
• 3 ASX 200 real estate shares that hit new 52-week lows on Friday

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 Temple & Webster Group Ltd, Vanguard MSCI Index International Shares ETF, Xero, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Adore Beauty Group Limited, Temple & Webster Group Ltd, Vanguard MSCI Index International Shares ETF, and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

Amazon (NASDAQ: AMZN) and Alibaba (NYSE: BABA) might initially look very similar. Both companies are e-commerce leaders that have built up massive cloud infrastructure platforms as their secondary businesses. Both have also expanded their sprawling ecosystems into adjacent markets such as video games, streaming media, and smart speakers.

But dig a little deeper and those superficial similarities quickly fade away. Today I’ll examine the key differences between Amazon and Alibaba, how they affect the market’s perceptions of both stocks, and if either tech giant is still worth investing in.

Don’t call Alibaba the “Amazon of China”

Alibaba is often referred to as the “Amazon of China,” but that casual comparison glosses over three key differences.

First, Alibaba actually generates all of its operating profits from its commerce (online and offline retail) businesses. Its cloud segment, Alibaba Cloud, continues to rack up operating losses and can only squeeze out a razor-thin profit on an adjusted earnings before interest, taxes, and amortization (EBITA) basis. That makes it the polar opposite of Amazon, which consistently generates most of its operating profits from Amazon Web Services (AWS), the largest cloud infrastructure platform in the world.

In other words, Alibaba at this point is still subsidizing the expansion of its cloud platform, which is the largest in China, with the growth of its retail marketplaces. Amazon subsidizes the expansion of its lower-margin retail business with its ongoing expansion of AWS.

Second, Alibaba still generates most of its revenue in China, but it’s been a top target of the country’s antitrust regulators. It was slapped with a record $2.8 billion fine last year, then forced to end its exclusive deals with top merchants and rein in its promotional deals. Those setbacks arguably made it easier for rivals like JD.com (NASDAQ: JD) and Pinduoduo (NASDAQ: PDD) to gain ground on Alibaba. Amazon also faces some regulatory challenges across the world, but its business is much better diversified, with more than a dozen region-specific marketplaces.

Lastly, the Securities and Exchange Commission has threatened to delist Alibaba and other Chinese stocks from U.S. stock markets as early as next year if they don’t comply with U.S. auditing standards. That unresolved threat could prevent most investors from buying Alibaba as a long-term investment. 

Alibaba faces a tougher slowdown than Amazon

Alibaba’s revenue rose by 19% to 853.1 billion yuan ($134.6 billion) in its fiscal 2022, which ended March 31. Its Chinese commerce revenue rose 18%, and its cloud revenue increased 23%.

But in its fiscal 2023, analysts expect its revenue to increase by just 9% as it grapples with macroeconomic and competitive headwinds for its e-commerce business, as well as a slowdown in cloud spending by large internet companies.

Amazon’s revenue rose 22% to $469.8 billion in 2021. Its North American sales grew by 18%, its international sales increased by 22%, and its AWS sales jumped by 37%.

However, Amazon expects its e-commerce growth to cool off in a post-lockdown world, with supply chain and inflationary headwinds exacerbating that pressure. As a result, analysts expect Amazon’s revenue to rise by only 12% this year. On the bright side, they expect AWS to continue growing at a healthy clip.

But Amazon faces a steeper earnings decline

Alibaba and Amazon both intend to ramp up their spending as their revenue growth slows down. Alibaba plans to pour more cash into its discount marketplaces (Taocaicai and Taobao Deals) to counter Pinduoduo and JD’s Jingxi in the lower-end market, and to continue increasing its mix of first-party sales — which will squeeze its margins, but will help it address the quality control and logistics issues across its third-party marketplaces. It will also continue expanding its lower-margin overseas marketplaces.

Analysts expect Alibaba’s net income to rise by 53% in its fiscal 2023, but that’s only because it’s lapping a very easy comparison to its 59% decline (which included its antitrust fine) in fiscal 2022.

Amazon is grappling with higher fuel and labor costs, as well as the ongoing pressure to allow its workers to unionize. At the same time, it’s increasing its investments in its digital ecosystem (videos, music, and games) to lock in its Prime subscribers. Analysts expect all those headwinds to reduce Amazon’s net income by 76% in 2022.

Which stock is the better buy?

Alibaba trades at less than 10 times this year’s adjusted earnings estimate, while Amazon has a much higher forward price-to-earnings ratio of 48. Both multiples have been slightly skewed by the companies’ elevated spending plans for their current fiscal years, but both stocks still look cheap relative to their top-line growth, trading at about 2 times this year’s sales. 

Alibaba might initially appear to be the better bargain, but its stock won’t command a higher premium until it stabilizes its e-commerce businesses and overcomes its regulatory headwinds in China and the U.S. As for Amazon, its stock could also remain in limbo until it reins in its spending again.

That said, I believe Amazon is still a better buy than Alibaba now because it’s growing faster, it’s better diversified, and it doesn’t face any delisting threats. 

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

The post Better buy: Amazon vs. Alibaba appeared first on The Motley Fool Australia.

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Leo Sun has positions in Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and JD.com. The Motley Fool Australia has recommended Amazon and JD.com. 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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Unfortunately for its shareholders, the Wesfarmers Ltd (ASX: WES) share price has been out of form in 2022.

Since the start of the year, the conglomerate’s shares have lost a disappointing 27% of their value.

Is the Wesfarmers share price weakness a buying opportunity for income investors?

According to a recent note out of Morgans, its analysts are positive on Wesfarmers and believe recent weakness has created a buying opportunity for investors. Particularly given the quality of its retail portfolio and strength of its management team.

Morgans currently has an add rating and $58.40 price target on the conglomerate’s shares.

So, with the Wesfarmers share price last trading at $43.67, the broker’s price target suggests potential upside of almost 34% for investors over the next 12 months.

Its analysts commented:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are proving to be a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the pullback in the share price as a good entry point for longer term investors.

What about Wesfarmers’ dividends?

Morgans is forecasting Wesfarmers to pay a fully franked dividend of $1.65 per share in FY 2022. It then expects the company to increase this to $1.81 per share in FY 2023.

Based on the current Wesfarmers share price, this equates to yields of 3.8% and 4.15%, respectively, over the next two financial years.

All in all, this stretches the total potential return on offer with the Bunnings owner’s shares to a very attractive 38%.

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

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More reading

• How much further could the Wesfarmers share price fall? Here’s what the experts reckon
• Experts name 2 ASX dividend shares for income investors to buy now
• The Wesfarmers share price is trading at 2-year lows. Time to plough in?
• Belt tightening? 5 ASX 200 consumer shares slipping to new 52-week lows today
• ASX retail shares tumble following RBA rate rise

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 Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you interested in adding some more ASX shares to your portfolio when the market reopens?

Three ASX growth shares that could be worth considering are listed below. Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is an award-winning printed circuit board (PCB) design software provider. Thanks to its leadership position in a market growing rapidly, management has set itself some bold growth targets over the coming years. This includes more than doubling its revenue to US$500 million by 2026.

Bell Potter appears confident it will get there. As such, it has put a buy rating and $41.25 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

Another ASX growth share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies. Aristocrat has emerged from the pandemic in an arguably stronger position than when it entered it. This is demonstrated by its continued market share gains since the reopening. Another positive is that its digital business, now called Pixel United, continues to grow strongly and generate significant recurring revenues. Combined with its share buyback and potential expansion into the real money gaming market, this bodes well for its earnings per share growth in the coming years.

Morgans is a fan of the company. It has an add rating and $43.00 price target on its shares.

TechnologyOne Ltd (ASX: TNE)

A final ASX growth share to look at is enterprise software provider TechnologyOne. It is currently transitioning to become a software-as-a-service (SaaS) focused business. Pleasingly, management has a lot of confidence in the transition. So much so, it is aiming to almost double its annual recurring revenue (ARR) to $500 million by FY 2026.

The team at Goldman Sachs is very positive on Technology One and have been pleased with its transition. The broker currently has a buy rating and $13.30 price target on its shares. Goldman believes the risks are to the upside for TechnologyOne’s ARR target.

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

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More reading

• Is it safe to buy ASX shares right now?
• 2 beaten down ASX tech shares that analysts rate as buys
• 3 fantastic ASX shares that analysts reckon have huge upside potential
• Why is Audinate outperforming other ASX tech shares today?
• Broker says Aristocrat share price is great value with 27% upside

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 Altium. The Motley Fool Australia has recommended TechnologyOne 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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ASX 200 energy shares have been the best performing basket on the ASX this year to date, securing an aggregate 40% gain since trading resumed in January.

The S&P/ASX 200 Energy Index (ASX: XEJ), the benchmark of the sector, has climbed another 8% in the last month of trading as well.

The question now becomes if shares within the basket have the legs to run even higher.

Can ASX 200 energy shares continue their ascent?

Providing a bullish underweight to the case is the current breakout in the price of oil. Brent Crude, the world’s benchmark for oil pricing, has broken out to new highs in recent weeks and now trades at US$122 per barrel.

Meanwhile, US natural gas futures have surged more than 173% year on year to US$8.99/MMbtu.

In fact, checking a list of energy-based commodities on Trading Economics, it’s an all green affair for all energy markets on a yearly basis.

JP Morgan’s Annual Energy Paper 2022 also submits that energy players are set to continue realising upside into the coming periods, based on a myriad of factors.

“[G]lobal gas and coal consumption in 2021 were already above pre-COVID levels, and global oil
consumption should surpass pre-COVID levels sometime next year,” it wrote.

“Looking further out, some forecasts of oil demand in 2030 and 2040 are not that different from today.

“With energy demand still in excess of supply, [we] believe the MSCI Global Energy Composite will outperform both renewable energy stocks and the broad equity market again over the next year.”

Coal is also set to remain top-heavy, the energy paper says, reminding us that “coal is still widely relied upon in many developing countries, and also Japan”.

This language appears to provide a robust case for ASX-listed energy giants such as Santos Ltd (ASX: STO), Beach Energy Ltd (ASX: BPT) and Whitehaven Coal Ltd (ASX: WHC).

Each are up a respective 12.5%, 48% and 104% this year at the close on Friday. These returns are plotted on the chart below. Each instrument has tracked the other closely during that time.

As to what’s next for the sector, the market – and likely, geopolitics – will ultimately decide.

The post ASX 200 energy shares are up 40% so far this year. Can they run further? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• What’s driving the Beach Energy share price to a new 52-week high today?
• Why did the Santos share price smash a 2-year high on Thursday?
• ASX coal shares have been soaring lately. Here’s why
• ASX 200 midday update: Magellan rebounds, Crown’s takeover boost

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 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 an income investor, then the Commonwealth Bank of Australia (ASX: CBA) dividend has probably caught your eye over the years.

And with Australia’s largest bank’s shares recently taking an almighty tumble, it may once again be catching eyes.

In light of the recent weakness in the banking sector, let’s take a look to see what analysts are expecting from the CBA dividend in the coming years.

What are analysts forecasting for the CBA dividend in the next few years?

According to a note out of Goldman Sachs, its analysts are expecting the CBA dividend to provide investors with attractive yields through to FY 2024.

In FY 2021, the banking giant rewarded its shareholders with a fully franked $3.50 per share dividend.

Goldman expects this to be increased to $3.75 per share in FY 2022. Based on the current CBA share price of $93.78, this will mean a fully franked 4% yield for investors.

The broker is then forecasting a 20 cents per share increase to $3.95 per share in FY 2023. This equates to a 4.2% yield at today’s share price.

Finally, in FY 2024, Goldman is expecting an even bigger jump from the CBA dividend to a fully franked $4.33 per share. This represents an attractive 4.6% dividend yield for investors.

Is the CBA share price good value?

Unfortunately, the team at Goldman Sachs believe the CBA share price is still overvalued despite its recent pullback.

According to the note, the broker currently has a sell rating and $89.86 price target on its shares. This implies potential downside of 4.2% for its shares over the next 12 months.

Goldman sees more value on offer with other bank shares.

The post Here’s the CBA dividend forecast through to 2024 appeared first on The Motley Fool Australia.

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More reading

• ASX 200 has its worst week in two years
• Why are ASX 200 bank shares rebounding on Friday?
• The CBA share price has sunk a brutal 10% so far this week. What gives?
• What exactly is going on with ASX 200 bank shares and the RBA rate rise?
• Why has the CBA share price cratered 4% today?

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

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