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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was able to record a small gain despite weakness in the banking sector. The benchmark index rose 0.35% to 7,121.1 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to tumble on Thursday following a disappointing night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 53 points or 0.75% lower this morning. On Wall Street, the Dow Jones fell 0.8%, the S&P 500 dropped 1.1%, and the Nasdaq tumbled 0.7%. This was driven by concerns that rising oil prices could stifle economic growth.

Miners likely to fall

It could be a tough day for the mining sector after BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) saw their US listed shares tumble overnight. Both mining giant’s dropped approximately 2.5% due to the weakening global economic outlook because of rising inflation.

Oil prices storm higher

It could be a good day for energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices continued their ascent overnight. According to Bloomberg, the WTI crude oil price is up 2.6% to US$122.56 a barrel and the Brent crude oil price is up 2.9% to US$124.02 a barrel. Oil jumped to a 13-week high on rising US gasoline demand.

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.15% to US$1,854.70 an ounce. The precious metal rose amid concerns over global growth.

St Barbara acquisition talks

The St Barbara Ltd (ASX: SBM) share price will be one to watch after $380 million Genesis Minerals Ltd (ASX: GMD) confirmed that it had been in acquisition talks with the gold miner. However, these talks have now concluded and St Barbara has yet to make a takeover offer. Genesis is a gold explorer with a project in close proximity to St Barbara’s Leonora operation.

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

More reading

• Here are 2 ASX 50 shares analysts rate as buys
• Why is the Woodside share price flying higher today?
• Here are the 3 most traded ASX 200 shares on Wednesday
• Why are ASX 200 energy shares jumping today?
• 3 ASX 200 shares cracking new 52-week highs on Wednesday

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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The ASX 50 index is home to 50 of the largest listed companies on the Australian share market.

While there are a number of quality options on offer in the index, two that could be in the buy zone are listed below.

Here’s what you need to know about these ASX 50 shares:

BHP Group Ltd (ASX: BHP)

The first ASX 50 share for investors to look at is BHP. It is of course one of the world’s largest mining companies with a portfolio of world class operations across a range of commodities and geographies.

It could be a top option for investors thanks to strong prices for many of the commodities it is producing. This is expected to offset higher labour costs and generate bumper free cash flow again in FY 2022.

And with the Big Australian’s balance sheet in a very healthy position, this provides it with the opportunity to reward shareholders with big dividends and consider M&A activities.

And while the BHP share price has stormed 12% higher this year, analysts at Macquarie still see plenty of upside ahead. Its analysts currently have an outperform rating and $57.00 price target on its shares.

REA Group Limited (ASX: REA)

Another ASX 50 share that is highly rated is REA Group. It is the dominant player in real estate listings in the Australian market.

Its shares have been hammered this year amid weakness in the tech sector. As disappointing as this is, it could be a buying opportunity for long term investors.

For example, Goldman Sachs currently has a buy rating and $167.00 price target on its shares.

Its analysts note that management “remains confident it can achieve double digit revenue/EBITDA growth through the cycle with positive jaws.”

“Overall, we believe these commitments illustrate the pricing power of REA, pipeline of value-add products, and its ability to offset any potential macro weakness, and now forecast FY22-24E Sales growth of 10% despite challenging volume listings,” it added.

The post Here are 2 ASX 50 shares analysts rate as buys appeared first on The Motley Fool Australia.

More reading

• Rio Tinto share price gains lag BHP despite green steel deal
• Why is the BHP share price having such a stellar day?
• Own BHP shares? Here’s how the miner plans to offset lower iron ore prices
• Can the REA share price turn over a new leaf in 2022?
• Leading brokers name 3 ASX shares to buy 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 recommended REA 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 Fortescue Metals Group Limited (ASX: FMG) share price has continued its strong form lately.

During Wednesday’s market close, the iron ore mining outfit’s shares lifted 2.22% to $21.63.

This means that Fortescue shares have surged 7.56% higher for the month of June.

In comparison, S&P/ASX 200 Index (ASX: XJO) is 1.25% in the red so far in June. This follows the Reserve Bank of Australia’s rate hike yesterday, which dragged down the benchmark index.

Let’s take a closer look at what’s driving the miner’s shares upwards.

Iron ore prices touch one-month high

Investors are bidding up the Fortescue share price after iron ore prices reached a one-month high.

Currently, the steel-making ingredient is fetching at US$146.50 per tonne, an improvement of 9.7% for the month of June.

An easing of COVID-19 restrictions in China as well as more potential support from government is driving the price.

In addition, it appears that the market is optimistic that demand could elevate as Chinese workers return to their jobs.

According to Bloomberg, iron ore inventories at major ports dropped to an eight-month low.

With demand outpacing supply, iron ore prices could rally even further.

Recently, India raised export duties for iron ore to 50% which increases the cost for steel mills. This is likely to impact supply on the international market as it becomes more expensive to send iron ore products overseas.

Fortescue share price snapshot

Over the past 12 months, the Fortescue share price has struggled to consistently remain near the $20 mark.

The company’s shares are down 3.5% for the period.

When looking at the year to date, Fortescue shares are up 12% despite a volatile start to 2022.

Based on today’s price, Fortescue presides a market capitalisation of approximately $66.07 billion.

The post Here’s why the Fortescue share price is 8% higher so far in June appeared first on The Motley Fool Australia.

More reading

• Is now the time to load up on Fortescue shares?
• These were the best performing ASX 200 shares last week
• Why Altium, Fortescue, PeopleIn, and REA shares are storming higher
• Why are the ASX 200 iron ore giants outperforming on Friday?
• ASX 200 midday update: Healius disappoints, BHP and Fortescue storm higher

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 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 Peninsula Energy Ltd (ASX: PEN) share price exploded today following positive news for the global uranium market.

Peninsula shares spent all day in the green, surging to close 20% higher at 21 cents apiece. In contrast, the S&P/ASX 200 Index (ASX: XJO) index lifted just 0.36% today.

So why did the Peninsula Energy share price have such a good day?

Biden administration target uranium production

It appears investors were interested in buying up Peninsula shares following news out of the United States overnight.

According to a Bloomberg report, US Government energy officials are meeting with congress staff to discuss a uranium deal.

President Joe Biden’s administration is reportedly seeking support for a $4.3 billion plan to buy uranium from domestic producers. Peninsula Energy is a mineral explorer focused on the Lance Uranium Project in the US state of Wyoming. 

The company is intent on expanding its project in the US. On 16 May, Peninsula Energy announced it had boosted its North American board presence with the appointment of Brian Booth as a non-executive director.

Commenting on the company’s plans for the Lance Uranium Project in the US, chairman John Harrison said:

We are very happy to secure the experience and services of Brian as a non-executive director as we embark on a critical six-month period for the company.

Brian brings extensive North American mining and capital markets experience and an impressive history of successfully guiding and leading companies through the mining lifecycle.

I much look forward to working with Brian as we work towards transitioning Lance into production.

Peninsula plans to make a final investment decision on the Lance project in the 2022 calendar year.

Peninsula Energy share price snapshot

The Peninsula share price flew higher than its ASX uranium peers today. The Paladin Energy Ltd (ASX: PDN) jumped almost 13% at the close, Boss Energy Ltd (ASX: BOE) surged 12%, while Bannerman Energy Ltd (ASX: BMN) leaped 9.5%.

The Peninsula Energy share price has soared 27% in the past 12 months, lifting 5% year-to-date.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has shed 2% in the past year.

Peninsula Energy has a market capitalisation of about $209 million based on the current share price.

The post Peninsula Energy share price soars 20% amid US news on uranium market appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 energy shares jumping today?
• Why are ASX uranium shares having such a cracker run on Wednesday?

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

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

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

Netflix (NASDAQ: NFLX) has been getting a lot of attention lately, but unfortunately, for the wrong reason. The streaming pioneer reported its first quarter of subscriber losses in over a decade, pointing to rising competition, account sharing, and the reversal of the pandemic boom as reasons for the drop-off.

These headwinds have been meaningfully negative, causing the stock price to fall by 71% off its highs in 2021. Let’s look more closely at why everyone is talking about Netflix stock.

1. Netflix faces rising competition

Netflix is not just competing with rival streaming services, though they are playing a part. Netflix is also competing with the rise of free, ad-supported entertainment options that consumers have at their fingertips: Alphabet‘s YouTube, TikTok, and Meta Platforms‘ Instagram have all gained in popularity. Unlike Netflix, those services are free to consume. The difference is that viewers are shown advertisements that interrupt their engagement, which is a feature they’ve demonstrated a willingness to tolerate.

For years, Netflix’s management had been against releasing an ad-supported version of its service at a lower price. However, facing subscriber losses for the first time in over a decade and a stock price that has been down 71%, management signalled that it is planning an ad-supported version that could launch as early as the end of this year.

NFLX data by YCharts.

2. 100 million more homes should be paying for Netflix

That Netflix discovered shared accounts isn’t surprising, but the scale of the sharing is a bit of a shocker. The figure has some investors talking about why management let it get to this level before doing something about it. Did they believe that allowing customers to use each other’s accounts makes them willing to pay higher subscription prices? Or perhaps developing the technology to limit sharing is costly, and the company would rather spend money on creating content instead?

Regardless, Netflix essentially has 100 million customers using the service without paying. Interestingly, launching an ad-supported version will help solve this problem, although not entirely. Netflix can show advertisers that the service is used in the 222 million paying households and an additional 100 million nonpaying ones. In that way, Netflix could draw an increased budget from marketers who would be willing to pay more because they’re getting the opportunity to influence 100 million more households.

Netflix grew to earn $29.7 billion in revenue in 2021 without any ad support. An additional income stream could boost that closer to $40 billion in a few short years.

NFLX Revenue (Annual) data by YCharts,

3. Folks are streaming less content now

During the first pandemic-plagued year of 2020, Netflix added 36.6 million streaming subscribers — 8.7 million more than the 27.9 million it added in 2019. That acceleration of growth was impressive from a company the size of Netflix, which already had the industry lead. However, momentum slowed in 2021, when Netflix added only 17.2 million subs.

It’s only getting worse as Netflix lost 200,000 subscribers in Q1 and forecasts it will lose 2 million more in the second quarter. This downward trajectory is troubling news for shareholders, who are uncertain how far this will go. Will the service eventually lose all the 36.6 million subs it added during 2020? That seems unrealistic. Will it lose the incremental 8.7 million subscribers it added in 2020 vs. 2019? That’s more likely. Will it turn things around in the third quarter and return to growth? That seems most likely.

The changes going on at Netflix are definitely noteworthy. It’s clear why investors are buzzing about its stock.

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

The post Why is everyone talking about Netflix stock? appeared first on The Motley Fool Australia.

More reading

• Can Stranger Things stop Netflix’s subscriber bleed?
• Could Netflix eventually become an excellent dividend stock?
• Will Microsoft and Apple shares finally give way in the stock market’s downturn?
• Here’s why Netflix stock climbed higher today

Parkev Tatevosian has positions in Alphabet (C shares), Meta Platforms, Inc., and Netflix. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, 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 Alphabet (A shares), Alphabet (C shares), Meta Platforms, Inc., and Netflix. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Meta Platforms, Inc., and Netflix. 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 Macquarie Group Ltd (ASX: MQG) share price spent today in the green while all its S&P/ASX 200 Index (ASX: XJO) bank peers struggled. Was it a miracle?

Likely not. Let’s take a look at what could have weighed on Macquarie’s ASX 200 peers and why the investment bank appears to have dodged it.

As of Wednesday’s close, the Macquarie share price is 0.99% higher than its previous close at $179.24.

For context, the ASX 200 rose 0.36% today while the S&P/ASX 200 Financials Index (AXSX: XFJ) slumped 2.85%.

Is this buoying the Macquarie share price?

Macquarie traded higher amid a sea of red on Wednesday. Some of its ASX 200 bank peers– like Bendigo and Adelaide Bank Ltd (ASX: BEN) – fell as much as 7.2% today.

Shares in the ‘big four’ all plunged lower. Westpac Banking Corp (ASX: WBC) shares were the hardest hit – falling 6.1%.

Meanwhile, those in Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Australia and New Zealand Banking Group Ltd (ASX: ANZ) slumped 4.4%, 3.9%, and 2.3% respectively.

As my colleague Bernd Struben reported earlier today, their suffering follows the Reserve Bank of Australia’s decision to hike interest rates by 0.5% on Tuesday.

Macquarie joined Westpac, CBA, and ANZ in passing the rate rise onto customers on Wednesday.

While rate rises allow banks to increase their net interest margins, bolstering profits, it also means their funding costs increase.

On top of that, higher rates might weigh on housing prices – which is bad news for most banks.

So, is there a reason the Macquarie share price is the only of the ASX 200 banks avoiding the downturn?

One reason might be because the bank just doesn’t deal with many home loans. Thus, it might face fewer headwinds following the RBA’s decision.

Asset finance broker and comparison service Savvy released an analysis on Australia’s mortgage market earlier this year.

It found Macquarie held just 3.32% of the market in 2021. That was around $60 billion worth of home loans compared to its current $68 billion market capitalisation, courtesy of the ASX.

Of course, there could be numerous other happenings behind the Macaque share price’s gains today. But mystery is sometimes the nature of the market.

The post Why is Macquarie the only ASX 200 bank share in the green today? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 financials shares named as buys
• The Macquarie share price has lost 10% in a month. So what’s the dividend yield now?
• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• What’s the outlook for the Macquarie share price in June?
• 3 quality ASX 300 shares with dividend reinvestment plans

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Wesfarmers Ltd (ASX: WES) share price has been sliding lower and today hit a two-year low of $44.65. Could now be a good time to consider buying shares in the retail conglomerate?

At the close of trade, Wesfarmers shares are down 0.7% at $45.24. They have fallen almost 25% since the beginning of the year and are closer than ever to the March lows seen in the COVID-19 crash of 2020.

Is the Wesfarmers share price a buying opportunity?

It’s an interesting question, considering interest rates are rising and inflation is building in Australia.

Ray Dalio, the billionaire founder of Bridgewater Associates, explains why interest rates are so important for asset values:

It all comes down to interest rates. As an investor, all you’re doing is putting up a lump sum payment for a future cash flow.

There has been plenty of the elevated inflation in different areas of the economy, such as energy, during 2022, particularly after the Russian invasion of Ukraine. So, the second half of FY22 will deliver the results for investors to keep an eye on.

How is the company coping with inflation?

Wesfarmers said in February 2022 that it was actively managing increasing inflationary pressure and would leverage its scale to mitigate the impact of rising costs. It also said the group’s retail businesses would “increase their focus on price leadership”.

However, the company did note that it was incurring additional costs and experiencing stock availability issues due to the global supply chain disruptions, elevated team member absenteeism and delays with third-party logistics providers.

In the first half of FY22, Wesfarmers reported that its underlying net profit after tax (NPAT) fell by 14.2% to $1.2 billion. I think it will be interesting to see how Wesfarmers has responded to inflation in the six months to June 2022.

Challenging times for Wesfarmers

Things are looking a bit tougher for Wesfarmers. Australian households may not have as much money to spend at the retail giant’s brands such as Bunnings, Officeworks, Kmart, Target and Catch.

Falling Australian house prices could also be a headwind for Bunnings’ earnings if people spend less on improving their houses and more on loan repayments instead.

But plenty of tailwinds…

I think that Wesfarmers is one of the best businesses on the ASX. It has proven to be effective at buying the right businesses and building them into strong brands for the long-term future. This includes the Mt Holland lithium project.

While earnings may drop in the shorter-term, the company is doing the right thing by building new growth avenues, in my opinion. The Australian Pharmaceutical Industries acquisition is the beginning of a health and beauty division for Wesfarmers, opening up another earnings stream for the company.

Bunnings is one of the leading retailers in the country, I believe. It earns strong profit for Wesfarmers and it has the ability to grow through expansion with other businesses such as its recent acquisition of  Beaumont Tiles.

I think that the Wesfarmers share price is also attractive because the business continues to pay attractive dividends to shareholders. That’s a useful way to boost total returns.

I believe that Wesfarmers is a long-term opportunity. The diversified nature of the business lowers the risk in times like this and opens up more potential opportunities, in my opinion.

The post The Wesfarmers share price is trading at 2-year lows. Time to plough in? appeared first on The Motley Fool Australia.

More reading

• Belt tightening? 5 ASX 200 consumer shares slipping to new 52-week lows today
• ASX retail shares tumble following RBA rate rise
• Why this top broker is tipping the Wesfarmers share price to rise 24%
• Top brokers name 3 ASX shares to buy next week
• What’s in store for the Wesfarmers share price in June?

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 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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Listed below are a couple of dividend shares that brokers believe are in the buy zone right now.

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

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share that could be in the buy zone is the Charter Hall Social Infrastructure REIT.

This real estate investment trust invests in social infrastructure properties such as bus depots, police and justice services facilities, and childcare centres.

Goldman Sachs is a fan of the REIT and has a conviction buy rating and $4.20 price target on its shares. it commented:

We continue to believe the REIT is positioned for a solid growth outlook given the sector’s positive fundamentals and CQE’s strong balance sheet, with headroom and liquidity to pursue accretive investment opportunities.

As for dividends, the broker is forecasting dividends per share of 17.2 cents in FY 2022 and 18.3 cents in FY 2023. Based on its current share price of $3.57, this implies yields of 4.8% and 5.1%, respectively.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share that could be in the buy zone is Super Retail. It is the company behind the BCF, Macpac, Rebel, and Supercheap Auto businesses.

Super Retail’s shares have taken a tumble this year amid concerns over COVID headwinds and its inventory management. However, analysts at Citi remain positive and have a buy rating and $14.00 price target on its shares. The broker believes the market’s concerns are overplayed.

We continue to view the market’s concerns about Super Retail’s elevated inventory position to be significantly overplayed given these strong sales trends, likely minimal risk of ageing given where the inventory is held and management’s perspective on the risks to its supply chain.

In respect to dividends, Citi is expecting fully franked dividends of 66 cents per share in FY 2022 and 64 cents per share in FY 2023. Based on the current Super Retail share price of $9.03, this will mean yields of 7.3% and 7.1%, respectively.

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

More reading

• ASX retail shares tumble following RBA rate rise
• Analysts name 2 ASX 200 dividend shares to buy now
• Experts say these 2 ASX dividend shares are buys
• Analysts name 2 ASX dividend shares to buy with 5% yields
• Why are ASX 200 retail shares climbing 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 Super Retail Group Limited. The Motley Fool Australia has positions in and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for exposure to the healthcare sector, then Goldman Sachs has got your back.

This morning the broker named three ASX healthcare shares that it believes are well-placed for growth in the future.

Cochlear Limited (ASX: COH)

Goldman Sachs has a buy rating and $237.00 price target on this hearing solutions company. Its analysts believe Cochlear is well-placed to at least meet its guidance in FY 2022. It explained:

Whilst the recovery [from the pandemic] will still be mixed, we believe the steady declines in hospitalisation rates across key markets, supportive backlog volumes and improved margin trajectory support a much improved picture from here. [..] As such, we believe current targets for FY22 offer the best chance in several years for COH to deliver at/above the top-end of its guided range (GSe: A$297m).

Integral Diagnostics Ltd (ASX: IDX)

The broker is also a fan of this diagnostic imaging services provider and has a buy rating and $4.20 price target. Goldman highlights that the recovery in imaging volumes is underway. It is also expecting cost pressures to ease in FY 2023, allowing Integral Diagnostics to deliver strong earnings growth. It said:

Looking forward, we expect the cost pressures to taper in FY23E (+7%), albeit with upside if management achieves their target of low-single-digit growth which, on our numbers, would result in favorable EBITDA growth of +23% in FY23E.

ResMed Inc (ASX: RMD)

Goldman currently has a buy rating and $34.40 price target on this sleep treatment company’s shares. The broker highlights that ResMed has a huge backlog of new patients waiting to be diagnosed that should be supportive of growth. It commented:

There is a 12-18 month backlog of new patients waiting to be diagnosed. While there is a risk these prospective patients may switch to alternative therapies (e.g. dental sleep, neurostimulation), the degree of movement towards these substitutes has been relatively minor against the size of the CPAP market. Instead, we believe the backlog of new patients may add upside risk to our estimates if there is a material realisation of incremental devices/masks sales to new patients in FY23/24 (supply chain pressures permitting).

The post Goldman Sachs names 3 ASX healthcare shares to buy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Experts name 2 excellent blue chip ASX 200 shares to buy
• Analysts name 2 high quality ASX blue chip shares to buy right now
• Why the ResMed share price could jump 25% from current levels
• 3 ASX shares to buy in troubled times: expert panel

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 Cochlear Ltd. and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool Australia has recommended Cochlear Ltd. and Integral Diagnostics Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The WiseTech Global Ltd (ASX: WTC) share price had a rather pleasant day this Wednesday. The software-as-a-service (SaaS) logistics company enjoyed a healthy 2.79% bump today, closing trade at $40.85.

Even so, this positivity doesn’t quite cover WiseTech’s recent woes. The ASX 200 tech share is still down by 2.97% over the past five trading days. As well as down a nasty 30% or so over 2022 thus far.

These share price woes are despite the fact that WiseTech’s books are in far better shape than many other ASX tech shares. As my Fool colleague Brooke covered last month, WiseTech had a robust $380 million in cash and no debt when the company last reported its earnings (for the half-year ending 31 December).

Not only that, but WiseTech also reported an 18% jump in revenues for the half to $281 million. It also reported a 77% rise in underlying net profit after tax (NPAT) to $77.3 million. The company jacked up its interim dividend as well, to 4.75 cents per share, fully franked. That represented a 75.9% increase over the previous year’s interim dividend. And a 23.4% increase over the company’s previous final dividend.

So if everything is going WiseTech’s way, why has the company’s share price been falling so dramatically?

Why has the WiseTech share price been hammered in 2022?

Well, we can’t be completely sure. But it is worth noting that ASX tech shares of most shapes and sizes have been suffering severely over the year so far. Amid rising inflation and interest rates, ASX shares have been extremely volatile over 2022.

And it’s ASX tech shares that have been among the hardest hit. To illustrate, the S&P/ASX All Technology Index (ASX: XTX) is now down almost 32.5% over 2022. So it’s not as though WiseTech’s woes are isolated.

Another factor to consider is WiseTech’s valuation. As it currently stands, WiseTech shares are trading on a price-to-earnings (P/E) ratio of over 90. This is extremely high by conventional standards, and still shows that investors are pricing in a lot of growth into the WiseTech share price.

It also means that WiseTech’s P/E ratio was even higher at the start of the year at well over 100. So perhaps investors have decided to trim what they are willing to pay for WiseTech shares in light of increased global uncertainty.

But this could well present a buying opportunity too. As we covered last month, analysts at Macquarie Group, as well as fund manager Marcus Today, are both bullish on WiseTech shares right now.

According to reporting in the Australian Financial Review (AFR) last month, here’s what Macquarie had to say on WiseTech’s valuation:

WiseTech is still looking expensive on an enterprise value-to-sales multiple versus its own history, the company is now trading in-line with its historical one-year forward enterprise value-to-earnings before interest, tax, depreciation, and amortisation multiple and is thus looking fairly valued.

At the current WiseTech Global share price, this ASX 200 tech share has a market capitalisation of $13.34 billion, with a dividend yield of 0.21%.

The post The Wisetech share price is down 33% this year, despite the fact the company’s rolling in cash. What gives? appeared first on The Motley Fool Australia.

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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 positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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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