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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Catapult Wealth portfolio manager Tim Haselum picks whether he would cut or keep three ASX shares that have plummeted in value this year.

Cut or keep?

The Motley Fool: Let’s take a look at three fallen stars of the ASX. Firstly, would you keep or cut A2 Milk Company Ltd (ASX: A2M)?

Tim Haselum: For us it’s a hold. I know it’s continuing to get smashed, but for us it’s not cheap particularly. When you look at other consumer staple stocks, its [price to earnings ratio] P/E‘s still relatively high.

I think we just have to ignore the China story. We know they’ve got supply chain issues and we know all the China bad side, but for us, one, it’s consumer staples, and two, we will likely see some recovery as things reopen with supply-side issues dropping away. 

But it’s a growth opportunity outside of China we like. New Zealand, the US, Malaysia, Singapore, and Vietnam, they’ve launched new products, they’ve got a net cash position of around $800 million, they’ve got the firepower to wait this out. 

And even though the A2 moniker, if you look at the science, is a bit dubious, the brand clearly has value. Clearly, the punters do like it. 

Yes, there’s competition and, yes, it’s not going to go back up to previous highs, for sure, but we do think there’s growth in it. For us, it’s a hold and let’s see what that can do.

MF: Another one heavily influenced by the Chinese market — would you cut or keep Treasury Wine Estates Ltd (ASX: TWE)?

TH: Treasury Wines, for us, I think it’s too much of a struggle. For us, it’s a cut. 

Their last financials they said they expect zero sales into China. We saw Penfolds saying that they’re going to try and bypass this by opening a winery in China. We just think that it’s just too hard to replicate a Chinese market in the short term. Even though maybe in the long term they can claw it back, this is a pretty major shift for them in the wine industry. 

Australian wine has got a good brand name, but it’s very highly competitive. For us, because they have those issues where they had to dump out cheap wine because nobody wanted it, they’ve tried to shift to the more expensive market at the worst possible time.

When we think about wine versus milk, it’s a very different story. Wine for us, when you have rates rising and you might see mortgage distress and inflation is destroying real wages, that’s a bit of a tough one. For us, I think that wine is one where we’re happy just to cut it out and maybe look at it later on. 

Certainly could turn it around, but at this stage, we just put this one into the ‘too hard’ basket.

MF: Travel is back in a big way. So would you cut or keep Flight Centre Travel Group Ltd (ASX: FLT) shares?

TH: When you look at its market cap, it’s about where it was pre-COVID. If you think the share price is going to go up from here because the other side seems to be priced in, you’re expecting growth beyond pre-COVID. I just think that’s one where that’s a tough argument. 

You’ve got to remember there’s a petrol price story here and inflation is turning everyone. 

The argument for corporate travel, for example, is that corporates are going to jump back onto planes and do meetings. Well, maybe. I don’t think it’s going to fully recover anytime soon. 

There’s going to be a level of both consumer and corporate that’s going to be held back here. I think the whole interest rate rise story, there’s a big psychological effect on that across the board.

For us, looking at the market cap and looking at what’s priced in, I would say it’s one where it’s probably around about close to fair value normal times. 

In a situation like this, I’d say the market’s ignoring downside risk.

The post These 3 ASX shares have plunged this year: Expert reveals what to do appeared first on The Motley Fool Australia.

More reading

• Why is the Flight Centre share price still attracting so much short interest in May?
• Could the new Labor Government herald better days for Treasury Wine shares?
• The Flight Centre share price has taken off 5% in a week. Is travel really ‘back, baby’?
• Can A2 Milk shares benefit from the US baby formula shortage?
• These are the 10 most shorted ASX shares

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk, Flight Centre Travel 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was a positive performer and pushed higher. The benchmark index rose 0.4% to 7,155 points.

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

ASX 200 expected to rise

The Australian share market looks set to rise on Thursday following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% higher this morning. On Wall Street, the Dow Jones rose 0.6%, the S&P 500 climbed 0.95%, and the Nasdaq stormed 1.5%. This was driven by the release of the US Fed’s minutes which revealed plans for further rate hikes to tame inflation.

Champion Iron full-year results

The Champion Iron Ltd (ASX: CIA) share price will be one to watch on Thursday when the iron ore miner releases its full-year results. According to a note out of Goldman Sachs, it is expecting Champion to report revenue of C$1,466 million and EBITDA of C$924 million. This will be a 14% and 12.8% increase, respectively, over the prior corresponding period.

Oil prices rise

It could be a good day for energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.95% to US$110.80 a barrel and the Brent crude oil price is up 0.75% to US$114.41 a barrel. Optimism over demand boosted prices.

Tabcorp downgraded

The Tabcorp Holdings Limited (ASX: TAH) share price could be almost fully valued according to analysts at Goldman Sachs. According to a note, the broker has downgraded the wagering company’s shares to a neutral rating with a $1.07 price target. While Goldman is reasonably positive on new Tabcorp and notes that it offers “a unique business mix,” it just doesn’t see enough value to keep its buy rating.

Gold price tumbles

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a tricky day after the gold price tumbled lower overnight. According to CNBC, the spot gold price is down 0.7% to US$1,852.10 an ounce. The release of the US Federal Reserve’s minutes weighed on the precious metal.

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

More reading

• Here are the top 10 ASX shares today
• This is the top ASX 200 share I wish I’d bought when starting out
• Woodside share price steady on first day trading under new name
• These 3 shares are topping the ASX 200 volume charts on Wednesday
• Why are ASX gold shares leaping 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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Looking for a blue chip ASX 200 share or two for your portfolio following the market selloff? Listed below are two that have been given buy ratings recently.

Here’s what you need to know about them:

Goodman Group (ASX: GMG)

The first ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of warehouses, large scale logistics facilities, and business and office parks.

Goodman recently released its third-quarter update and revealed that it continues to experience strong demand for its properties. This is being driven by increased intensification of use, long-term supply chain requirements, tight supply in urban infill locations and the quality of its assets.

Demand has been so strong, that last week management upgraded its earnings guidance for the second time in FY 2022. Its latest guidance reveals expectations for annual growth of at least 23%.

The good news is that its growth looks unlikely to stop here. Goodman has $13.4 billion of development work in progress, which is expected to underpin further solid growth over the coming years.

Citi is a fan of the company and sees the recent weakness in the Goodman share price as a buying opportunity. Following its third quarter update, the broker said: “We re-iterate Buy and see the -25% YTD share price decline as a good entry point.”

Citi currently has a buy rating and $29.50 price target on the company’s shares. This implies potential upside of 51% for investors.

Xero Limited (ASX: XRO)

Another ASX 200 share that has been sold off is Xero. The leading cloud-based business and accounting software provider’s shares are down 40% since the start of the year due to weakness in the tech sector.

While this is disappointing, analysts at Goldman Sachs believe this could be a buying opportunity for long term focused investors. Particularly given its view that Xero is a “compelling global growth story” with potential for multi-decade strong growth. This is being underpinned by its global expansion and platform strategy, which Goldman highlights is “showing positive signs.”

The broker recently reiterated its buy rating on the company’s shares with a $118.00 price target. This suggests potential upside of 35% for investors over the next 12 months.

The post Analysts name 2 ASX 200 shares to buy after the selloff appeared first on The Motley Fool Australia.

More reading

• What’s happening with ASX 200 tech shares today?
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Here’s why ASX 200 tech shares are under pressure on Tuesday
• Do experts think the Xero share price is a buy?
• ‘We see value’ in this dividend ASX share: expert

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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 an easy way to invest in international shares for diversification purposes, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at right now? Listed below are three high quality ETFs that could be worth considering:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF to look at is the BetaShares Global Energy Companies ETF. With oil prices at sky high levels and looking unlikely to pullback materially any time soon, the companies included in this ETF appear well-placed to deliver bumper profits in the near term. Among the fund’s holdings are a range of energy giants including BP, Chevron, ExxonMobil, and Royal Dutch Shell.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF for investors to look at is the BetaShares NASDAQ 100 ETF. This high quality ETF gives investors access to many of the world’s greatest companies. This includes iconic companies such as Alphabet, Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla. While these companies have been sold off this year amid weakness in the tech sector, this could have created a buying opportunity for long term focused investors.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. As its name implies, this popular ETF gives investors exposure to the biggest companies in a global video game market estimated to comprise 2.7 billion active gamers. Among the shares that are included in the fund are AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck notes that these companies are well-placed to benefit from the increasing popularity of video games and eSports.

The post 3 high quality ETFs for ASX investors to buy now appeared first on The Motley Fool Australia.

More reading

• Here’s why the Betashares Nasdaq 100 ETF (NDQ) is sinking today
• Are these 2 sold-off ASX growth shares now cheap bargains?
• 3 top ETFs for ASX investors to buy now
• Here are 2 quality ETFs that are now a lot cheaper
• 2 high quality ETFs for ASX investors to buy after the market meltdown

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 BETANASDAQ ETF UNITS and BetaShares Global Energy Companies ETF – Currency Hedged. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports 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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Woolworths Group Ltd (ASX: WOW) is undoubtedly a popular ASX share. This could be for one or more of many possible reasons.

For one, chances are highly likely that many prospective Woolworths shareholders are also customers. Woolworths is, after all, the grocer with the highest market share in the country. Woolworths has also been on the ASX boards for decades, and its size and scale in the consumer staples sector means that many investors consider Woolworths to be an ASX 200 blue-chip share.

This is only accentuated by Woolworths’ long history of paying dividends. The company hasn’t missed a dividend for decades now. But its history of dividend payments certainly hasn’t been perfect. For one, the company has yet to beat its 2015 annual total of $1.39 in dividends per share. 2021 saw the company dole out $1.08 in dividends.

So how safe is the Woolworths dividend if it can be cut so dramatically?

Is the Woolworths dividend a safe bet?

Well, that’s a complex question. Just because Woolworths hasn’t been increasing its dividends year in, year out doesn’t mean the company’s dividend isn’t safe.

As my Fool colleague covered a few months ago, Woolworths’ 2021 dividends represented a payout ratio of 65.45% of the company’s earnings per share (EPS). That means the company kept almost 35% of its earnings within the business.

If Woolies had a payout ratio of 90-95%, we could say that its dividend safety was under a cloud. But on these metrics, it looks as though Woolworths can easily afford to keep the dividend taps open.

But for investors looking for income certainty, Woolworths shares might not be the best bet, going off of history.

We’ve already examined the company’s patchy dividend record over the past decade. And the ongoing COVID-19 pandemic has played havoc with Woolies’ costs in recent years. This is probably partly why 2022’s interim dividend of 39 cents was less than 2021’s 53 cents.

At the closing Woolworths share price today, this ASX 200 blue-chip share has a market capitalisation of $41.8 billion, with a fully franked dividend yield of 2.68%.

The post How safe is the Woolworths dividend? appeared first on The Motley Fool Australia.

More reading

• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Leading brokers name 3 ASX shares to buy today
• Is the Woolworths share price a buy following the latest acquisition or a no deal?
• 5 things to watch on the ASX 200 on Monday
• Woolworths share price lifts following $218m online marketplace deal

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

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Shares of Insurance Australia Group Ltd (ASX: IAG) traced lower today and finished trading down 0.44% at $4.51 apiece.

The loss eclipses a 9% downfall for the insurance giant in the last 12 months, amid a difficult two years for the insurance industry across 2020/21.

How might IAG hold up in another catastrophe?

Analysts at Goldman Sachs forecast that ‘catastrophe risks’ are likely to worsen before normalising back to positive trends in a recent note.

Whilst IAG is investing substantial amounts in mitigating climate change and catastrophe risks, “an issue of this magnitude is difficult to manage,” Goldman says.

Ultimately, the broker says, insurers like IAG will need to reflect this risk premium in their price setting and to factor in inflation.

Meanwhile, analysts at Morgan Stanley see the ‘volatility’ of catastrophe risk to be a going concern for IAG.

The investment bank quotes research from Swiss insurance and reinsurance firm Swiss Re, which now sees natural catastrophes growing at a long-term rate of 5-7%.

On this basis, Morgan Stanley reckons that Australian insurers like IAG will have to absorb more catastrophe risk in their earnings profile, which could ultimately impact its share price.

So to answer the question, judging by the analysis of these brokers, is that another catastrophe is certain to have some kind of impact on insurers like IAG.

Just what that impact might be, remains to be seen.

IAG share price snapshot

According to Bloomberg data, 58% of analysts covering IAG rate it a buy right now, whereas 25% have it as a hold. The remaining coverage – around 17% – says to sell IAG shares.

This year to date IAG shares have snaked around 6% into the green following another positive month of trade.

The post How might the IAG share price fare with another ‘catastrophe’? appeared first on The Motley Fool Australia.

More reading

• The IAG share price has tumbled 27% in 5 years. Have the dividends been worth it?
• How does the IAG share price stack up against analyst ratings?
• Top brokers name 3 ASX shares to sell today
• What is the dividend yield on IAG shares in May?
• The IAG share price has gained 6% in a month. Is this just the beginning?

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

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When assessing ASX shares, investors often focus on a company’s net profits to get a good understanding of its ability to be self-sustaining. However, there’s another important metric that is essential to the survival of a company over the long term: free cash flow.

In a way, this is the ‘true’ cash that is generated by the company. This figure measures profitability excluding non-cash expenses and includes capital expenditure. In other words, this is the amount of money that is actually available to the company and its shareholders.

Today, we are covering three ASX shares inside the All Ords Index (ASX: XAO) that are providing the financial equivalent of a torrential downpour in free cash flows.

ASX shares with impeccable free cash flow

To set the scene, the importance of free cash flow is now dawning on newer investors. Many are experiencing their first cycle of investing throughout interest rate increases. As a result, the era of cheap access to capital is drying up. This means it is crunch time for business model fundamentals.

Illustrious entrepreneur Sir Richard Branson once said:

Never take your eyes off the cash flow, because it’s the lifeblood of business.

On that note, we better dig into a few ASX shares with ample lifeblood. Here are three ASX All Ords shares that have plenty of free cash flow:

Magellan Financial Group Ltd (ASX: MFG)

The Australian-based fund manager, Magellan, has been going through a stretch of turmoil since losing one of its key clients. In response, shareholders have doused the company in disappointment and offloaded shares swiftly. This had led to this ASX share losing a staggering 70% from its 2021 high.

Yet, profitability has remained intact in spite of the whirlwind. For the last 12 months, Magellan has recorded free cash flow of $402.6 million on revenue of $788.8 million. At a free cash flow margin of 51%, the company appears to be in fit condition to continue to rain down cash for shareholders.

National Storage REIT (ASX: NSR)

While the next substantial free cash flow producer isn’t technically an ASX ‘share’, this real estate investment trust (REIT) is certainly worth a mention.

National Storage is one of the largest storage providers across the Australiasia region with a total of 214 sites. Management has consistently sought out acquisitions and expansion over the last 12 months, adding 12 centres to its portfolio.

Based on the last 12 months, National Storage achieved a free cash flow margin of ~59% on $248.7 million of revenue.

Pro Medicus Limited (ASX: PME)

The last ASX All Ords share making an appearance in this list is medical imaging software provider Pro Medicus. Although this is the largest company by market capitalisation out of the three covered, it is, counterintuitive, the one with the smallest revenue.

However, Pro Medicus is often heralded by many shareholders as a high-growth company, warranting its 115 times [price to earnings] P/E ratio. That aside, there is no arguing the healthcare business is a healthy free cash flow producer.

With a 51% free cash flow margin, this ASX share is able to keep itself afloat for the time being.

The post Free cash flow: Here are 3 ASX All Ords shares that have it in spades appeared first on The Motley Fool Australia.

More reading

• The best 2 ASX shares money can buy right now: expert
• What’s going on with the Challenger share price today?
• 2 stellar ASX 200 growth shares analysts rate as buys
• What’s happening with ASX 200 tech shares today?
• Why is the Magellan share price marching higher today?

Motley Fool contributor Mitchell Lawler has positions in Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus 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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Today, the S&P/ASX 200 Index (ASX: XJO) ducked and weaved through a patchy market to finish in the green. At the end of the session, the benchmark index climbed 0.37% higher to 7,155.2 points.

It was a hit-and-miss bout on the Aussie stock exchange today. A portion of companies performed solidly, including consumer staples and banks. While other parts of the index suffered at the hand of a concerning blow to digital advertising companies in the US overnight. The local tech sector ended up being on the nose today, falling 3%.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, GQG Partners Inc (ASX: GQG) was the biggest gainer today. Shares in the global boutique asset manager rallied 6.29% higher as investors anticipate the company’s inclusion in the FTSE All-World Cap Index. Find out more about GQG Partners here.

The next best performing ASX share across the market today was Nufarm Ltd (ASX: NUF). The agriculture chemical company traded 5.61% above its previous closing price despite a lack of any price-sensitive news. Uncover the latest Nufarm details here.

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

ASX-listed company	Share price	Price change
GQG Partners Inc (ASX: GQG)	$1.605	6.29%
Nufarm Ltd (ASX: NUF)	$5.27	5.61%
Perseus Mining Ltd (ASX: PRU)	$1.96	4.53%
Orica Ltd (ASX: ORI)	$16.14	3.53%
Evolution Mining Ltd (ASX: EVN)	$3.82	3.52%
Mercury NZ Ltd (ASX: MEZ)	$5.46	3.41%
Nib Holdings Ltd (ASX: NHF)	$7.42	3.06%
Northern Star Resources Ltd (ASX: NST)	$9.11	2.48%
Metcash Ltd (ASX: MTS)	$4.33	2.12%
Coles Group Ltd (ASX: COL)	$18.00	1.98%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• This is the top ASX 200 share I wish I’d bought when starting out
• 3 ASX All Ordinaries shares enjoying a Wednesday windfall
• ASX 200 midday update: BHP and Pilbara Minerals shares tumble
• Do South32 shares have exposure to ‘green metals’?
• 3 ‘disruptive’ ASX companies Aussies now can’t live without

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended NIB Holdings 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 Webjet Ltd (ASX: WEB) share price has been on a high in the last nine days on the market.

The travel company’s share price has surged nearly 10% since market close on 12 May. Qantas Airways Limited (ASX: QAN) shares have climbed 3% in the same frame, while Flight Centre Travel Group Ltd (ASX: FLT) shares have gained 2.8%.

So what’s been happening at Webjet?

Webjet share price takes off

Webjet shares could have risen in recent times thanks to renewed optimism for travel. In a conference call on Thursday discussing the company’s annual results, Webjet managing director John Guscic shared his outlook for the travel industry with this notable summation:

Guess who’s back? Travel’s back, baby.

On 17 May, Webjet reported a return to profit in the second half of FY22. The company said the business turned around in FY22. The profit in the second half of the year was underpinned by the WebBeds and Webjet OTA businesses.

On the company results, Webjet said:

FY22 was a year of recovery. We are now cash flow positive, our two largest businesses returned to profitability and we are seeing markets rebound strongly as travel restrictions continue to ease.

Overall, Webjet reported a 258% jump in revenue and a statutory net loss of $85.4 million.

Webjet did not declare a dividend for FY22 due to some uncertainty still remaining. The company also has not provided an earnings guidance for FY23.

As my Foolish colleague Tristan reported recently, broker opinion on the Webjet share price is mixed. Ord Minnett has placed a $7.48 price target on the company’s shares. This is a 28.52% upside on the current share price.

However, Macquarie has predicted the Webjet share price could fall slightly to $5.80. Morgans has also maintained an add rating on the company with a $6.55 price target. This is a nearly 13% increase on the current share price.

In the bigger picture, Australia’s international borders opened on 21 February. On 18 April, cruise ships were allowed to reenter Australia as the country’s biosecurity emergency ended. The COVID testing requirement for travel was also dropped. Meanwhile, on 11 May, New Zealand announced it would reopen its borders to tourists from the end of July.

Share price snapshot

Webjet shares have ascended nearly 19% in the past 12 months, while they are up nearly 13% year to date.

However, in today’s trade, the Webjet share price fell 1.52% to $5.82. Flight Centre shares also dropped 1.84%, while Qantas shares finished 0.56% in the red.

For perspective, the S&P/ASX 200 Index (ASX: XJO) finished 0.37% higher today and climbed 1.55% during the past year.

Webjet has a market capitalisation of about $2.2 billion based on its current share price.

The post Up 10% in 9 trading days, what’s going on with the Webjet share price? appeared first on The Motley Fool Australia.

More reading

• Is the Webjet share price an opportunity that can soar?
• The Flight Centre share price has taken off 5% in a week. Is travel really ‘back, baby’?
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy today

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 Flight Centre Travel Group Limited and Webjet 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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Owners of Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares have found their investment at the forefront of an interest rate battle this month.

The smallest of the ‘big four’ banks has dropped its variable interest rate to 2.29% for new customers.

The move has led experts to believe competition between lenders is heating up despite the current interest rate environment.

As of Wednesday’s close, the ANZ share price is $25.63, 1.02% higher than it finished Tuesday’s session.

For context, the S&P/ASX 200 Index (ASX: XJO) also gained 0.37% on Wednesday.

Let’s take a closer look at the battle apparently breaking out between Australia’s major lenders.

ANZ fans the flames of competition among lenders

ANZ has dropped its lowest variable rate by 0.15% just weeks after it bumped it higher amid heightening competition between the big banks.

The move is likely an attempt to secure its position in an increasingly competitive lending market.

Right now, some new customers can enjoy a variable rate of 2.29% when they sign onto an ANZ Simplicity PLUS home loan.

Meanwhile, Commonwealth Bank of Australia (ASX: CBA) launched Unloan last week. The digital mortgage platform offers variable rates starting at 2.14%.

Westpac Banking Corp (ASX: WBC) is also bowing to competition. It’s offering some new customers a two-year introductory rate of 2.19% on variable home loans.

Experts have noted these offerings are fanning competition between banks battling for home loan customers.

“What these big bank cuts show is that competition in the mortgage market is still alive and kicking, despite the RBA hikes,” RateCity.com.au research director Sally Tindall said.

“While most variable customers will now be dealing with higher repayments, some banks eager for new business are handing out exemptions,” she said.

ANZ share price snapshot

However, while ANZ is joining in on the interest rate battle, its share price is offering little competition to its big four peers.

The bank’s stock has tumbled 7% since the start of this year. That makes it the worst-performing big bank of 2022 so far.

The ANZ share price has also slipped almost 9% over the last 12 months.

The post Own ANZ shares? The bank is amping up competition between its big four peers appeared first on The Motley Fool Australia.

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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 recommended 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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