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Fletcher Building Ltd (ASX: FBU) shares be suspended until later today to give the building products company time to explain its bombshell announcement to analysts and investors. The ASX 200 stock’s suspension request states:

[Fletcher Building] considers it appropriate for additional time to be provided following the conclusion of the investor call, to enable investors and the market to consider and assess the information released by FBU and the commentary provided at the investor call.

What’s going on with this ASX 200 stock?

This morning Fletcher Building released its half-year results which were significantly weaker than the market was expecting. It also announced the impending exit of its CEO, Ross Taylor.

In respect to its results, the ASX 200 stock reported:

• Revenue down 1% to NZ$4,248 million,
• EBIT before significant items down 27% to NZ$264 million,
• Net loss after tax of NZ$120 million
• Dividend suspended

What happened?

Fletcher Building’s outgoing chief executive, Ross Taylor, revealed that its performance was impacted largely by challenging trading conditions in New Zealand. He said:

Against the backdrop of materially weaker trading conditions, particularly in the NZ residential sector where volumes declined 20%, Group revenue of NZ$4,248 million was in line with the prior period’s NZ$4,284 million. EBIT before significant items was NZ$264 million, compared to NZ$360 million in the prior period.

Taylor also advised that significant items weighed on its profits. He adds:

The Group reported a net loss after tax of NZ$120 million, compared to a profit of NZ$92 million in the prior period. Disappointingly, the result was heavily impacted by the NZ$165 million significant items provision on the New Zealand International Convention Centre announced on 5 February and a $122 million non-cash impairment and writedown on the Tradelink Australia business.

Management is now looking to divest the Australian Tradelink business after deciding that “further ownership of the business is not in line with the strategic objectives of Fletcher Building.”

CEO and chair to exit

In a separate announcement, the ASX 200 stock advised that Ross Taylor will be leaving the company along with its chair, Bruce Hassall.

Hassall commented:

The Board, Ross and I believe it is in the best interests of the business and the team that he handover to a new leader and that I hand over to a new Chair at the time of the ASM in October.

Mr Taylor has a six-month notice period, which he will serve in full if required to facilitate an orderly handover to his successor.

Fletcher Building shares are down 19% over the last 12 months.

The post Guess which ASX 200 stock is suspended after reporting $120m loss and exit of CEO and chair appeared first on The Motley Fool Australia.

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More reading

• Why CSL, Fletcher Building, Skycity, and Wildcat shares are falling today
• 5 things to watch on the ASX 200 on Tuesday
• Why Core Lithium, Fletcher Building, Silver Lake, and Silver Mines shares are sinking
• Top ASX dividend shares to buy in February 2024
• $10,000 in savings? Here’s how I’d try to turn that into $500 a month of passive income

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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Thinking of buying the Vanguard Australian Shares Index ETF (ASX: VAS)? You’re probably not alone. VAS is the most popular exchange-traded fund (ETF), and index fund, on our ASX stock market. And by quite a mile too.

But although this ETF looks relatively simple, with just one ticker code, the reality is that it is a rather complex investment.

So if you’re thinking of buying VAS units today or in the future, it’s probably a good idea to know exactly where your money is going.

The ASX’s most popular index fund

As we touched on earlier, the Vanguard Australian Shares ETF is an index fund. This means that it represents an investment in an entire index, rather than a single ASX company.

In this particular case, the Vanguard Australian Shares ETF mirrors the S&P/ASX 300 Index (ASX: XKO). The ASX 300 is an index that tracks the fortunes of the 300 largest companies listed on the Australian stock market.

However, it doesn’t give equal representation to those 300 shares. Like most indexes, the ASX 300 is weighted by market capitalisation (size). This means that the largest shares have more influence in the index (and therefore the index fund) than the smaller ones.

What does VAS’ ASX portfolio look like?

To illustrate, let’s look at the five largest ASX 300 shares in VAS’s portfolio right now, along with their portfolio weightings (as of 31 December):

1. BHP Group Ltd (ASX: BHP) with a VAS portfolio weighting of 11.01%
2. Commonwealth Bank of Australia (ASX: CBA) with a weighting of 8.07%
3. CSL Ltd (ASX: CSL) with a weighting of 5.96%
4. National Australia Bank Ltd (ASX: NAB) with a weighting of 4.14%
5. Westpac Banking Corp (ASX: WBC) with a weighting of 3.46%
6. ANZ Group Holdings Ltd (ASX: ANZ) with a weighting of 3.36%
7. Macquarie Group Ltd (ASX: MQG) with a weighting of 2.84%
8. Wesfarmers Ltd (ASX: WES) with a weighting of 2.79%
9. Woodside Energy Group Ltd (ASX: WDS) with a weighting of 2.54%
10. Rio Tinto Limited (ASX: RIO) with a weighting of 2.17%

In very simple terms, this means that for every $100 you invest into VAS’s ASX units, $11.01 will be allocated to BHP shares. A further $8.07 will go towards an investment in CBA, and so on.

But a company like Kogan.com Ltd (ASX: KGN), which is up the back end of the ASX 300, and thus, VAS’ ASX portfolio, only commands a weighting of 0.019%. That means that of your $100, only 1.9 cents will find its way into Kogan shares.

As you can see, putting money into the Vanguard Australian Shares ETF will see your money spread out over a huge number of different investments. So hopefully you now have a better understanding of how an index fund like VAS works on the ASX if you’re thinking about buying into this popular ASX ETF.

The post Thinking about buying the Vanguard Australian Shares ETF (VAS)? Here’s what you’re really buying appeared first on The Motley Fool Australia.

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More reading

• Transform $50 into monthly income: The best ASX dividend stocks under $50
• Shares vs. property: Beginner investors choosing Aussie shares, ASX ETFs and rentvesting
• 5 ASX shares to buy and hold forever in your investment portfolio
• 5 reasons to buy an ASX index fund today
• Should I buy the Vanguard Australian Shares Index ETF (VAS) now or wait for an ASX dip?

Motley Fool contributor Sebastian Bowen has positions in CSL, Kogan.com, National Australia Bank, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Kogan.com, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended CSL and Kogan.com. 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 are plenty of ASX dividend shares to choose from, but which ones could be buys?

Three shares that were recently identified as buys are listed below. Here’s what analysts are saying about them:

Dexus Convenience Retail REIT (ASX: DXC)

The first ASX dividend share that could be a buy is Dexus Convenience Retail REIT. It is a convenience retail and service station property company.

Morgans is positive on the company and believes its shares are good value at current levels. Last week the broker put an add rating and $3.23 price target on its shares.

Its analysts are expecting some big dividend yields in the coming years. They are forecasting dividends per share of 21 cents in both FY 2024 and FY 2025. Based on its current share price of $2.84, this implies yields of 7.4%.

Elders Ltd (ASX: ELD)

Another ASX dividend share for income investors to look at is agribusiness company Elders. It provides livestock, real estate, feed and processing, wool agency services, and grain marketing services to rural and regional customers.

Bell Potter is a fan of the company, particularly given how operating conditions have been more favourable for Elders since the release of its FY 2023 results. It has a buy rating and $9.50 price target on its shares.

As for income, the broker is forecasting dividends per share of 34 cents in FY 2024 and 41 cents in FY 2025. Based on the current Elders share price of $8.99, this will mean yields of 3.8% and 4.55%, respectively.

Orora Ltd (ASX: ORA)

Finally, Goldman Sachs believes that Orora would be a good option for income investors. It designs and manufactures packaging products such as fibre-based packaging, glass bottles, beverages cans, and corrugated boxes.

Goldman likes the company due to its defensive qualities and positive growth outlook. The broker has a buy rating and $3.50 price target on its shares.

In respect to dividends, it expects dividends per share of 14 cents in FY 2024 and 15 cents in FY 2025. Based on the current Orora share price of $2.83, this will mean yields of 4.9% and 5.3%, respectively.

The post Are these ASX dividend shares strong buys for passive income? appeared first on The Motley Fool Australia.

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More reading

• Forget term deposits and buy these ASX dividend shares
• Here are the top 10 ASX 200 shares today
• Brokers say these ASX dividend stocks are buys
• How ASX shares vs. property performed in January
• These were the best performers on the ASX 200 in January

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 Goldman Sachs Group. The Motley Fool Australia has recommended Elders and Orora. 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 Commonwealth Bank of Australia (ASX: CBA) share price will be on watch today.

That’s because the banking giant has just released its half-year results and delivered a cash profit slightly ahead of expectations.

CBA share price on watch following half-year results

For the six months ended 31 December, Australia’s largest bank reported the following compared to the prior corresponding period:

• Operating income up 0.2% to $13,649 million
• Operating expenses up 4% to $6,011 million
• Cash net profit after tax down 3% to $5,019 million
• Fully franked interim dividend up 2.4% to $2.15 per share

What happened during the half?

CBA’s operating income was up slightly to $13,649 million during the first half. This was supported by volume growth and higher volume-based fee income, offset by margin compression.

Speaking of which, the bank’s net interest margin has fallen 6 basis points since the end of FY 2023 to 1.99%. This reflects increased deposit price competition and deposit switching.

Also heading in the wrong direction were the bank’s expenses. CBA’s operating expenses increased 4% to $6,011 million due to inflationary pressures and additional spending on technology to support the delivery of strategic priorities.

This ultimately led to CBA’s cash net profit after tax falling 3% to $5,019 million. Statutory net profit after tax was down by 8% to $4,837 million.

Nevertheless, this didn’t stop the CBA board from lifting its fully franked interim dividend by 2.4% to $2.15 per share. This represents a payout ratio of 72%, which is up from 68% a year earlier.

CBA ended the period with a CET1 ratio of 12.3%.

How does this compare to expectations?

The good news for the CBA share price is that this result appears to have come in slightly ahead of expectations.

The market consensus estimate was for a first half cash profit of $4,972 million.

Outlook

CBA’s CEO, Matt Comyn, commented that 2023 was a challenging year and warned that there could be some tough times ahead. He said:

2023 was increasingly challenging for many of our customers who are finding it harder to absorb cost of living pressures. The economy has been fairly resilient, supported by a strong labour market, savings and repayment buffers, population growth and relatively high commodity prices. However, downside risks are building as slowing demand and persistent inflation impact Australian businesses. Ongoing geopolitical tensions also create uncertainty.

As cash rate increases have a lagged impact on households and business customers, we expect financial strain to continue in 2024, with an uptick in our arrears and impairments. We remain well provisioned and capitalised, with capacity to navigate an uncertain economic environment.

The CBA share price is up 6% over the last 12 months.

The post CBA share price on watch following $5b cash profit and dividend boost appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why the CBA dividend fountain will be in focus this week
• 3 top ASX bank shares hit 52-week highs today: Is there still value to be found?
• CBA could be eyeing record profits if first-half results echo the past
• Which Big Four ASX bank share will pay the biggest dividend this year?

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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If you’re wanting to give your portfolio a boost with some exchange traded funds (ETFs), then it could be worth checking out these three named below.

Smart investors have these in their portfolios and have reaped the rewards over the last five years. Here’s what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ASX ETF to look at is the BetaShares NASDAQ 100 ETF.

This hugely popular fund provides investors with access to 100 of the best companies the world has to offer. These are the giants of Wall Street’s Nasdaq index and include the likes of Apple, Microsoft, and Tesla.

Over the last five years, the index it tracks has delivered an average return of 23% per annum.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another popular ASX ETF that has delivered the goods for smart investors is the VanEck Vectors Morningstar Wide Moat ETF.

If you’re a fan of Warren Buffett and his style of investing, then this could be the fund for you. That’s because it mirrors his investment style by providing you with access to companies with fair valuations, strong business models, and competitive advantages.

Over the last five years, it has delivered an average return of 16.5% per annum for investors.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ASX ETF for smart investors is the Vanguard MSCI Index International Shares ETF.

This fund provides investors with easy access to approximately 1,500 of the world’s largest listed companies from major developed countries.

Not only does this give investors access to global economic growth, but it also provides almost instant diversification to a portfolio. This is thanks to it offering exposure to sectors ranging from technology to financials and healthcare to energy.

Over the last five years, it has generated an average return of 13.75% per annum.

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

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More reading

• 4 ASX ETFs to supercharge your portfolio in February
• 2 excellent ASX ETFs I’d buy for retirement
• Shares vs. property: Beginner investors choosing Aussie shares, ASX ETFs and rentvesting
• 3 excellent ASX ETFs for beginner investors
• Big ticket clipping. Why I’m doubling down on Apple shares with $2,300

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, VanEck Morningstar Wide Moat ETF, and Vanguard Msci Index International Shares 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) slipped into the red. The benchmark index ended the day 0.15% lower at 7,603.6 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set for a very red day on Wednesday after a hotter than expected inflation reading in the US spooked investors. According to the latest SPI futures, the ASX 200 is expected to open the day 106 points or 1.4% lower. In late trade on Wall Street, the Dow Jones is down 1.8%, the S&P 500 has fallen 1.8%, and the Nasdaq is 2.1% lower.

Oil prices rise

It could still be a good session for ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$78.01 a barrel and the Brent crude oil price is up 1.1% to US$82.90 a barrel. Oil prices have been on a good run amid tensions in the Middle East.

Computershare results

The Computershare Ltd (ASX: CPU) share price will be on watch today after the company released its half-year results. The administration services company reported a 6% increase in management revenue to $1.6 billion and a 23% jump in management earnings per share to 54.8 cents. This was in line with the market’s expectations.

Gold price tumbles

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a difficult session on Wednesday after the gold price sank overnight. According to CNBC, the spot gold price is down 1.4% to US$2,005.4 an ounce. Traders were selling gold in response to the higher than expected inflation reading.

CBA results

Commonwealth Bank of Australia (ASX: CBA) shares will be on watch on Wednesday when the banking giant releases its half year results. The market is expecting Australia’s largest bank to report a first half cash profit of $4,972 million. This will be down from last year’s record half-year cash profit of $5,153 million.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• How another acquisition could boost Woodside shares following the collapse of the Santos deal
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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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Love it or loathe it, Valentine’s Day has arrived.

Regardless of what you think of the concept, there is no doubt the day has become a big deal commercially.

“Australians expected to spend around $1.1 billion on Valentine’s Day, according to Finder’s research,” said Moomoo market strategist Jessica Amir.

“The Australian Retailers Association and Roy Morgan suggest Australians plan to spend $485 million on Valentine’s Day gifts, with 42% choosing roses.”

And with all this consumption going on, there must be some ASX shares that will benefit, right?

Indeed, here are three stocks that Amir reckons could do pretty well out of all this outpouring of love:

First, some wine

Like it or not, many Australians like to commemorate a special occasion with a glass or two.

Especially so on a romantic day like Valentine’s Day.

“What’s a celebration without a bit of wine, of course,” said Amir.

“Keep an eye out for the Australian global wine-making business Treasury Wine Estates Ltd (ASX: TWE).”

Even without 14 February, many professional investors are in love with Treasury Wine shares at the moment because of the possibility that China will reduce punitive tariffs on Australian wine imports.

According to CMC Invest, 12 out of 14 experts are recommending a buy for Treasury Wine shares.

The share price is already up more than 4% so far this year.

Then let’s light the candles and see what happens

Then after you’ve enjoyed some social lubrication, it might be time to dim the house lights and fire up the candles.

“For other Aussie stocks that might be boosted amidst V-Day spending, consider… candle stockist Dusk Group Ltd (ASX: DSK).”

The Dusk share price has lost 43% over the past year, but that does mean it now has a mouthwatering — and fully franked — 11% dividend yield.

So maybe if the candles led to the ultimate expression of love, there may be some further great news down the track.

And Amir has the ASX stock perfectly poised to take advantage.

“Offering Aussies baby products, Baby Bunting Group Ltd (ASX: BBN) might just tick up amidst Valentine’s Day celebrations.”

The retailer also pays out a decent income, currently distributing a fully franked yield of 4.5%.

The post 3 ASX shares to buy for Valentine’s Day appeared first on The Motley Fool Australia.

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More reading

• 2 top ASX bargain stocks that could be ready for a bull run
• Morgans names the best ASX 200 dividend shares to buy in February
• 2 rejuvenated ASX 200 stocks with ‘strong brands’ ready to roar again
• 2 ASX dividend shares to double up on right now
• Brokers name 3 ASX shares to buy now

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 Treasury Wine Estates. 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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You don’t need a massive amount of cash to kick off an investment that could pay out a perpetual second income.

Don’t believe me?

Let’s start with $20,000 and take it through this hypothetical:

Save, save, save, invest, invest, invest

Say you constructed a well diversified portfolio of ASX shares with that $20,000.

Then you saved hard and managed to add $400 to it each month.

If that portfolio can manage a compound annual growth rate (CAGR) of 13%, then you’ll be raking in that second income in a matter of years.

Is 13% achievable?

I don’t see why not. 

If you listen to sensible advice and pick quality stocks like Johns Lyng Group Ltd (ASX: JLG) and Dicker Data Ltd (ASX: DDR), you’ll have done most of the hard work.

Over the past five years, Johns Lyng shares have returned a CAGR of 43%, while Dicker has brought in 30% per annum. The latter is paying out a 3.9% fully franked dividend yield on top of that.

These types of champions mixed with some lukewarm picks and the obligatory duds could very well provide you an overall 13% return each year.

Now sit back as the second income rolls in

Going back to the $20,000 portfolio with $400 added monthly, if that grows at 13% per annum then it will be worth $156,306 after just 10 years.

At that point, if you decide to stop reinvesting the returns and decide to cash it in each year, you will receive an annual second income of $20,319.

That is an average of $1,693 each month for the rest of your life.

Now, if you are still young and you have patience, perhaps you want to let that stock portfolio grow for 20 years before squeezing passive income out of it?

Twenty years of growth will turn the pot into $619,006, which equates to a massive annual second income of $80,470.

In monthly terms, that’s an amazing $6,705.

Enough to retire on, right?

Perhaps then it won’t be a second income, but your first.

Good luck with your investments.

The post $20k of savings? Here’s how I’d aim to turn that into a second income of $6,705 a month! appeared first on The Motley Fool Australia.

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More reading

• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• 2 ASX 200 shares I’d buy for my child and hold ’til the 2030s
• ASX passive income: How much should you invest to earn $1,000 every month?
• Dicker Data shares charge higher on dividend boost
• Why Boral, Dicker Data, Droneshield, and Novonix shares are charging higher

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data and Johns Lyng Group. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Johns Lyng Group. 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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Becoming wealthy with ASX shares is a goal that many of us share.

And while there are no guarantees which the share market, history shows that it is possible to become a millionaire through investing in high quality ASX shares.

Generally, this takes a long period of consistent investing, allowing compounding to work its magic.

However, every so often the Australian share market has produced a few ASX shares that do all the heavy lifting for you (and quickly).

These are millionaire-maker shares.

They are usually labelled this if they generate a return of 1,000% over a period of time.

That’s because this return would turn a $10,000 investment in a cool $1 million.

Millionaire-maker ASX shares

A recent example of a millionaire-maker ASX share is Wildcat Resources Ltd (ASX: WC8).

Less than 12 months ago the lithium explorer’s shares were changing hands for 3 cents per share.

This means that if you had invested $10,000 into Wildcat’s shares, you would have picked up approximately 3.33 million units.

Today they are trading at around 47 cents, which values that holding at over $1.5 million.

Though, it is worth highlighting that sinking $10,000 into a mining stock with a 3 cents share price is more or less gambling unless you really know what you’re doing. Investors (or speculators) frequently lose large sums of money from taking a punt on a penny stock.

So, investors may be better off looking for ASX shares with explosive growth and proven business models and allowing them a little more time to grow your wealth.

But which ASX shares?

Two ASX shares that brokers are tipping to have extremely bright futures are location technology company Life360 Inc (ASX: 360) and quick service restaurant solutions company TASK Group Holdings Limited (ASX: TSK).

Goldman Sachs currently has a buy rating and $10.50 price target on Life360’s shares. It notes that the company has a US$12 billion opportunity (and growing). Whereas it is currently reporting annualised monthly revenue (AMR) of $259.1 million.

As for TASK Group, Bell Potter has a buy rating and 59 cents price target on its shares. Its products are used by Guzman Y Gomez for point of sale, data warehouse, enterprise management, online ordering, and loyalty. It also counts McDonald’s Corp (NYSE: MCD) as a customer.

Whether they will be millionaire-maker ASX shares, only time will tell. But they’re certainly worth a closer look.

The post 2 ASX shares with millionaire-maker potential appeared first on The Motley Fool Australia.

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More reading

• Analysts tip 10% to 30% returns for these ASX growth shares in 2024
• Why I think Life360 shares are one of the best bargains out there
• Brokers name 3 ASX shares to buy now
• 5 ASX shares I think you can confidently invest $500 in right now
• Buy these ASX growth shares for 20% to 40% returns

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. 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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It doesn’t matter if you think a recession is coming or boom times are ahead, there are some businesses that are simply set up for a renaissance.

There are a couple of bargain stocks at the moment that I think are in that enviable position:

‘Strong brands and a quality management team’

After falling more than 8% since late October, the market is getting antsy about Treasury Wine Estates Ltd (ASX: TWE).

In 2020, the company lost the Chinese export market overnight in 2020 due to diplomatic tensions between Beijing and Canberra. 

But a review of the punitive tariffs in the world’s most populous nation is reportedly due out next month.

With relations between the countries somewhat warmer under the current federal government, there is much anticipation that Treasury Wine could have a massive market restored instantly.

“Lifting tariffs, or significantly reducing them, should ignite demand for Treasury Wine’s Penfolds brand,” Shaw and Partners senior investment advisor Jed Richards told The Bull.

“The company offers strong brands and a quality management team.”

Those who invest for a living are loving Treasury Wine’s prospects at the moment.

According to CMC Invest, 12 out of 14 analysts believe the stock is a buy.

Ugly duckling no more?

It’s been a rough few years for Credit Corp Group Limited (ASX: CCP) shares.

As a debt buyer, its business increases when consumers fall behind in their loan repayments.

First, the COVID-19 pandemic came and the market thought Credit Corp’s business would go gangbusters.

It didn’t.

Then inflation started rising and central banks hiked up interest rates until there were nose bleeds. Consumer wallets started getting lighter and lighter.

Credit Corp still couldn’t make hay.

So after five years, the share price is disappointingly down 14.5%.

But there are signs in the last few months that Credit Corp might have finally turned a corner.

The analysts at Celeste noticed that US collections productivity showed “steady improvement” last year after an awful 2022.

“The US delinquency environment has stabilised since the AGM, with debt ledger prices significantly lower,” read their memo to clients.

“The lending business experienced strong demand, with net lending guidance upgraded from $50 million to $145 million.”

And guess what? The Credit Corp share price has now gained a whopping 56% since 18 October.

Plenty of experts reckon it’s still a bargain stock. Six out of nine analysts currently surveyed on CMC Invest rate the stock as a buy.

The post 2 top ASX bargain stocks that could be ready for a bull run appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Morgans names the best ASX 200 dividend shares to buy in February
• 2 rejuvenated ASX 200 stocks with ‘strong brands’ ready to roar again
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now

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 Treasury Wine Estates. 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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