Tag: Motley Fool

  • 2 ASX dividend shares rated as buys by experts amid inflation volatility

    A man in suit and tie is smug about his suitcase bursting with cash. representing the large amount of cash that Bigtincan reported in its quarterly update which has made the Bigtincan share price rise todayA man in suit and tie is smug about his suitcase bursting with cash. representing the large amount of cash that Bigtincan reported in its quarterly update which has made the Bigtincan share price rise today

    There are some ASX dividend shares that may be able to provide attractive cash returns for investors amid the ASX share market volatility.

    While any business can fall during widespread falls, some businesses still show a gain over the last six months. These companies are also expected to pay sizeable dividends in the next few results.

    With that in mind, here are two ASX dividend shares that experts currently rate as buys:

    BHP Group Ltd (ASX: BHP)

    While the BHP share price closed down by 1.66% at $46.23 today, it is still up by around 26% over the last six months.

    Higher inflation may be a tricky thing for some sectors to deal with. However, 2022 has largely been a strong year for commodity prices, which has helped the related resource companies.

    BHP is on the verge of divesting its petroleum business to Woodside Petroleum Limited (ASX: WPL). This will leave BHP with exposure to iron ore, copper, nickel, coal, and potash.

    BHP thinks that decarbonisation will be helpful for copper, nickel, and potash demand over time. Indeed, the miner is looking to accelerate its potash plans amid the Russian invasion of Ukraine.

    The iron ore price has drifted lower over the last few weeks amid the lockdowns in China. However, the iron price remains higher than it was in the last quarter of the 2021 calendar year.

    Morgans currently rates the ASX dividend share as a buy with a price target of $54.30. That implies a possible double-digit return of the BHP share price, after a 12% decline over the last month.

    Morgans’ dividend estimates imply that the grossed-up dividend yield will be 12.2% in FY22 and 9.1% in FY23.

    Metcash Limited (ASX: MTS)

    Metcash is a business with multiple segments.

    It has a liquor segment that is a large supplier of liquor to independently owned liquor retailers in Australia. Some of the brands it supplies include Cellarbrations, The Bottle-O, IGA Liquor, Duncans, Thirsty Camel, Big Bargain, and Porters.

    Metcash has a food division that supplies IGA and Foodland supermarkets.

    In its hardware division are Mitre 10, Home Timber & Hardware, and Total Tools.

    Despite a heavy fall of 6.54% today to $4.29, the Metcash share price is still up more than 4% in the last six months.

    The ASX dividend share has been busy in May. Earlier this week, it extended the agreement to supply Drakes Supermarkets in Queensland for a further five years to June 2029.

    At the start of May, it announced it had entered into an agreement with Australian United Retailers to supply its national network of supermarkets and convenience stores, including its FoodWorks bannered supermarkets, for a further five-year period, starting July 2022. Sales to FoodWorks in FY21 accounted for around $900 million of the total $9.4 billion Metcash food sales.

    It’s currently rated as a buy by the broker UBS with a price target of $5. The broker is expecting Metcash to pay a grossed-up dividend yield of 6% in FY22 and 6.3% in FY23.

    The post 2 ASX dividend shares rated as buys by experts amid inflation volatility appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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

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  • 2 ASX All Ordinaries shares having a cracking day, despite the carnage

    Woman attached to rocket flies into airWoman attached to rocket flies into air

    Markets may be tanking but there are two ASX shares on the All Ordinaries Index (ASX: XAO) that are shooting the lights out on Thursday.

    The two have surged by more than 10% each – an impressive gain on any day. But it’s particularly notable today when the broader market is losing 1.6% due to a brutal sell-off on Wall Street overnight.

    All Ordinaries biotech share gets extra shot in the arm

    One of the outperformers is the Imugene Limited (ASX: IMU) share price, which rallied 20.59% to 20.5 cents at the time of writing.

    The biotech is still basking in the glow of yesterday’s Phase 1 clinical trial update. The first patients with advanced solid cancers have been dosed with Imugene’s CF33-hNIS (Vaxinia).

    The trial is being undertaken at City of Hope, one of the largest cancer research and treatment organisations in the United States.

    Preclinical tests have shown the treatment can shrink colon, lung, breast, ovarian, and pancreatic cancer tumours.

    However, even with today’s big surge, the Imugene share price is still 45% underwater over the last 12-months.

    Junior mining share hitching a lift from Hyundai

    Meanwhile, the Arafura Resources Limited (ASX: ARU) share price has rocketed up 14.29% to 40 cents at the time of writing.

    Investors are excited that the rare earths miner signed a memorandum of understanding (MoU) with Hyundai Motor Company.

    The MoU clears the way for Arafura and Hyundai to negotiate an offtake agreement for the ASX miner’s NdPr Oxide sourced from its Nolans Project.

    The All Ordinaries share is hoping to sell 1,000 to 1,5000 tonnes a year of NdPr oxide to Hyundai, which will use it to make natural magnets for electric vehicles.

    The MoU is non-binding, which means there is nothing stopping Hyundai from walking away. But it’s always exciting for a junior ASX miner to be courted by a global customer.

    The significant jump in the Arafura share price today means it is up 136% over the past 12 months.

    In contrast, the All Ordinaries has only managed a gain of 2% over the same period.

    The post 2 ASX All Ordinaries shares having a cracking day, despite the carnage appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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    Motley Fool contributor Brendon Lau 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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  • Why Nufarm, Pendal, Wesfarmers, and Westpac shares are sinking

    Red arrow going down and symbolising a falling share price.

    Red arrow going down and symbolising a falling share price.

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 1.65% to 7,063.9 points.

    Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

    Nufarm Ltd (ASX: NUF)

    The Nufarm share price is down 7.5% to $6.14. This follows the release of the agricultural chemicals company’s half-year results. For the six months ended 31 March, Nufarm reported a 41% increase in underlying EBITDA to $330 million. This was in the middle of the company’s guidance range of $320 million to $340 million. Some investors may have been expecting Nufarm to hit the top end of its range.

    Pendal Group Ltd (ASX: PDL)

    The Pendal share price is down 7% to $4.84. This has been driven by the fund manager’s shares trading ex-dividend this morning. Eligible shareholders can now look forward to receiving the company’s interim 21 cents per share partially franked dividend on 1 July.

    Wesfarmers Ltd (ASX: WES)

    The Wesfarmers share price is down over 7% to $46.15. Investors have been selling Wesfarmers and other retail shares after the release of very disappointing results from a couple of major retailers in the United States overnight. Target Corp saw its shares crash 25% lower on Wall Street last night after rising inflation dented customer spending.

    Westpac Banking Corp (ASX: WBC)

    The Westpac share price is down 4% to $23.38. As with Pendal, the majority of this decline is attributable to the banking giant’s trading ex-dividend this morning for its interim dividend. Australia’s oldest bank will be paying its 61 cents per share fully franked interim dividend next month on 24 June.

    The post Why Nufarm, Pendal, Wesfarmers, and Westpac shares are sinking appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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    Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 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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  • These 3 shares are topping the ASX 200 volume charts on Thursday

    A man in a business suit and tie places three wooden blocks with the numbers 1, 2 and 3 on them on top of each other on a table. representing the most traded ASX 200 shares by volume todayA man in a business suit and tie places three wooden blocks with the numbers 1, 2 and 3 on them on top of each other on a table. representing the most traded ASX 200 shares by volume today

    The S&P/ASX 200 Index (ASX: XJO) has decisively broken its winning streak this week. The ASX 200 has been sold off sharply this Thursday, recording a fall of 1.65% at the time of writing to be back under 7,100 points.

    But rather than dwelling on that, let’s instead check out the shares that are currently sitting at the top of the ASX 200 trading volume charts, according to investing.com.

    The 3 most traded ASX 200 shares by volume this Thursday

    Liontown Resources Limited (ASX: LTR)

    ASX 200 lithium hopeful Liontown Resources is our first share to check out today. Liontown has had a notable 14.54 million shares trade owners so far this Thursday. There have been no new announcements or news out of Liontown itself today. However, this ASX lithium stock has taken a nasty share price tumble. It has lost 4.6% today and is now going for $1.25 a share. It’s this steep fall that we can probably blame for this elevated trading volume.

    Telstra Corporation Ltd (ASX: TLS)

    Telstra is our next share worth a look. This ASX 200 telco has had a hefty 15.8 million shares bought and sold on the ASX today. Telstra also hasn’t come out with any news of note today, save for a routine share buyback notice. My Fool colleague, Tony, reported earlier that Telstra has lost some market share to small providers like Aussie Broadband Ltd (ASX: ABB), according to a new report from the Australian Competition and Consumer Commission. The ASX blue chip has been caught up in the woes of the market today, with its shares losing 1.5% to be priced at $3.91 a share. It could be the combination of this fall and Telstra buying back its own shares that have resulted in this high volume.

    Pilbara Minerals Ltd (ASX: PLS)

    Another ASX 200 lithium stock rounds out our list today. Pilbara has had a sizeable 16.4 million shares change hands thus far today. Here, it seems we have some good old-fashioned volatility to thank for this volume. Pilbara shares crashed at the market open this morning, falling more than 4% to $2.63. However, the company has staged something of a recovery. The Pilbara Minerals share price is now at $2.76, down by 1.43%, and only three cents from where it closed yesterday.

    The post These 3 shares are topping the ASX 200 volume charts on Thursday appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Telstra right now?

    Before you consider Telstra, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Telstra wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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    Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Aussie Broadband 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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  • Why are ASX 200 retail shares getting hammered on Thursday?

    Sad shopper sitting on a sofa with shopping bags.Sad shopper sitting on a sofa with shopping bags.

    Today has proven disastrous for many S&P/ASX 200 Index (ASX: XJO) retail shares as the market reacts to news from overseas.

    Right now, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is the ASX 200’s second worst performing sector.

    It’s down 2.9% at the time of writing. Comparatively, the broader ASX 200 is recording a 1.56% slump.

    And some of the consumer discretionary sector’s biggest names are among its biggest fallers on Thursday.

    So, what’s going so wrong for ASX 200 retail shares today? Let’s take a look.

    Why are ASX 200 retail shares struggling?

    Some of the ASX 200’s most recognisable retail shares are among today’s worst performers. And there’s a good reason behind their dip.

    The Wesfarmers Ltd (ASX: WES) share price is the sector’s worst performer, recording a 7.41% fall.

    On its heels are those of JB Hi-Fi Limited (ASX: JBH) and Super Retail Group Ltd (ASX: SUL) with falls of 6.34% and 6.03% respectively.

    Meanwhile, shares in Harvey Norman Holdings Limited (ASX: HVN), City Chic Collective Ltd (ASX: CCX), and Premier Investments Limited (ASX: PMV) are down 5.35%, 4.49%, and 1.98% respectively.

    The ASX 200 retail sell-off seems to have been spurred by United States retail monoliths Target Corporation (NYSE: TGT) and, to a lesser degree, Walmart Inc (NYSE: WMT).

    The former released its quarterly earnings overnight (Aussie time) to the market’s disappointment.

    The near US$100 billion company’s earnings per share (EPS) plunged 48% last quarter as it struggled with lower-than-expected sales, supply chain issues, and increased freight costs.

    Its share price tumbled a whopping 25% overnight.

    Additionally, Target’s results dropped just one day after Walmart announced its income had slipped 23% over the quarter amid supply chain issues, higher wage costs, and inflationary pressures.

    The major US retailer’s tumbling earnings, understandably, sparked concerns a recession could be nigh.

    That in turn likely weighed on the S&P 500 Index (SP: .INX) and the Nasdaq Composite (NASDAQ: .IXIC). They fell 4% and 4.7% respectively as Australia slept.

    Of course, recessions generally negatively affect consumer spending and, thus, retailers.

    Therefore, such talk – and the poor performances of their international peers – is likely weighing on ASX 200 retail shares today.

    The post Why are ASX 200 retail shares getting hammered on Thursday? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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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 positions in and has recommended Harvey Norman Holdings Ltd. and Super Retail Group Limited. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd., Super Retail Group Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Premier Investments 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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  • Why did this ASX copper share just pop then stop?

    The Austral Resources Australia Ltd (ASX: AR1) share price won’t be moving any further this afternoon.

    This comes as the company requested that its shares be placed in a trading halt.

    At the time of writing, the copper producer’s shares are frozen at 36 cents apiece.

    Austral issued with speeding ticket

    During early afternoon trade, management requested the Austral share price be halted while it prepares an announcement.

    According to the release, the company is planning to make an announcement in relation to a response to an ASX price and volume query.

    Austral shares climbed 5.88% throughout the day before stock exchange operator ASX Ltd (ASX: ASX) issued a speeding ticket.

    The rise came despite the broader ASX market recording heavy falls after investors expressed their fears regarding the current economic outlook.

    It’s worth noting that Austral shares have accelerated by 71% over the past week. The volume traded has also been relatively high, with between 3 and 4 million shares transacted daily. This compares to an average day of around 500,000 shares exchanging hands.

    Austral has requested that the trading halt remains in place until Monday 23 May or following the release of the announcement, whichever comes first.

    Austral share price summary

    It has been a solid 12 months for the Austral share price, rocketing by 80% following strong copper prices.

    When looking at year to date, its shares have advanced to record a gain of almost 120%.

    Based on valuation grounds, Austral commands a market capitalisation of roughly $74.79 million.

    The post Why did this ASX copper share just pop then stop? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Austral right now?

    Before you consider Austral, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Austral wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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    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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  • Why is the Ethereum price down 48% this year?

    woman examining ethereum price

    woman examining ethereum priceThe Ethereum (CRYPTO: ETH) price has almost halved since 1 January.

    Down another 4.1% over the past 24 hours to US$1,954 (AU$2,793), the world’s number two crypto by market cap has lost 48% of its value in 2022.

    And crypto investors who bought on 16 November last year, when the Ethereum price was trading at all-time highs of US$4,892, will be sitting on losses of just over 60%.

    While it’s maintained its number two ranking, Ethereum’s market cap has dropped to US$236 billion from well over half a trillion dollars at its peak.

    Why is the Ethereum price falling?

    Ethereum, if you’re not familiar, is the biggest blockchain network in the world enabling the decentralised execution of smart contracts. And it’s this real world applicability that many see as key to its long term value.

    Crypto enthusiasts have been keenly awaiting the coming merge, which will see Ethereum shift from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus to verify transactions. This will greatly reduce the blockchain’s energy use and reduce costs.

    Many analysts also expect the pending switch to PoS to send the Ethereum price higher. While that may still happen, it certainly hasn’t yet.

    Instead, prices have been falling as cryptos have been moving closely in line with risk assets, like high growth tech shares, this year.

    As David Donabedian, chief investment officer of CIBC Private Wealth Management pointed out, “I think it will continue to trade with the equity market and risk assets. That’s the big lie that’s been exposed, the idea that it’s some new asset class that’s going to help diversify your portfolio has been blown to smithereens.”

    As for risk assets, you need to look no further than the performance of the tech-heavy Nasdaq this year.

    With investors selling risk assets over concerns about the potential of large, rapid interest rate increases, the Nasdaq has dropped 27.9% year-to-date.

    The post Why is the Ethereum price down 48% this year? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Ethereum right now?

    Before you consider Ethereum, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ethereum wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

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

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  • Zip just joined forces with another ASX 200 company

    Two men shaking hands on a merger.Two men shaking hands on a merger.

    Qantas Airways Limited (ASX: QAN) announced on Thursday that it would allow customers to split their fare payments through fellow ASX 200 company Zip Co Ltd (ASX: ZIP).

    The buy now, pay later service will be available for both domestic and international bookings.

    According to Qantas Loyalty chief Olivia Wirth, this is the first time the airline had joined forces with a buy now, pay layer provider.

    “The option to buy now, pay later through Zip gives our customers more choice in how they pay for their flights,” she said.

    “With Zip they can spread the cost over time choosing flexible repayments, and also earn Qantas points on the payment as well as the flight itself.”

    Aussies ‘making up for lost time’, jetting off everywhere

    Qantas shares have been a beneficiary of Australians moving past COVID-19 restrictions, now trading more than 5.6% higher than where it started the year.

    “After two years of restricted travel Australians are making up for lost time,” said Wirth.

    “Domestic travel is back at pre-COVID levels while international travel is building back strongly to destinations like the US, Europe, Bali and Fiji.”

    Zip investors will be hoping some of Qantas’ magic will rub off on them, as they have watched their shares shrink almost 80% since 1 January.

    The stock even hit a new four-year low on Thursday.

    Even at the bargain-basement price, only four out of 10 analysts are recommending Zip shares as a buy, according to CMC Markets.

    Double dip on Qantas points

    Zip ANZ managing director Cynthia Scott said the deal with the airline would give travellers “control of their finances” after they return home.

    “We are also giving freedom and choice back to customers by giving them the option to pay for their trip before they go, or when they get back,” she said.

    “Our research shows that buy now, pay later users are more likely to travel in the next 12 months compared to non-users… In fact, more than 75% of Zip customers intend on travelling in the next 12 months.”

    Travellers who use Zip to delay their payments can also “double dip” by earning Qantas points through the Zip Rewards loyalty programme.

    “We’re continuing to develop new partnerships like this one with Zip to give our frequent flyers more ways to earn points,” said Wirth.

    “It helps keep members engaged in the program and ultimately drives value for our business.”

    The post Zip just joined forces with another ASX 200 company appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    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 positions in and has recommended ZIPCOLTD FPO. 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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  • Why is the Woolworths share price sliding 7% today?

    Sad person at a supermarket.Sad person at a supermarket.

    The Woolworths Group Ltd (ASX: WOW) share price is in the doghouse today, joining a raft of other retailers.

    In afternoon trade, shares in Australia’s largest supermarket operator are down a considerable 6.8% to $34.735. If the pain continues, it will mark the worst one-day performance for the company since it split away from Endeavour Group Ltd (ASX: EDV) in June 2021. However, that fall in value was attributable to removing ownership value in the liquor retailer. To find a valid comparison, we need to go back to 31 March 2020, when it fell by 8%.

    So why is one of Australia’s biggest companies taking a plunge today?

    Retail has a target on its back

    A general concern for retail shares was set into motion last night after one of the most recognisable retailers in the world reported disappointing first-quarter numbers.

    Ringing a warning bell on inflation, bricks and mortar retailer Target Corporation (NYSE: TGT) told shareholders that rising labour and freight costs took a bite out of the company’s bottom line. On top of this, customers tightened their budgets during the quarter — perhaps due to inflation — resulting in reduced spend on discretionary items.

    The challenges led to Target missing analysts’ earnings per share (EPS) estimates by 28.5%. As a result, the retail stock fell a head-spinning 25% overnight — its biggest fall since 1987.

    Back on Aussie markets, it appears ASX investors are taking Target’s disastrous day as a cautionary tale for local retailers.

    By the looks of it, the Woolworths share price is not immune to the concern. However, in its recent third-quarter results, Woolworths largely inferred that higher costs had been passed on to the customer. The company illustrated this in its Q3 results, stating:

    Woolworths Retail sales benefited from a successful trade plan, including Prices Dropped on Healthier Products, elevated COVID impacted in-home consumption, and shelf price inflation due to input cost pressures.

    Nonetheless, investors are being cautious today given the backdrop of the worrisome numbers from Target and Walmart.

    Woolworths share price in review

    The Woolworths share price is now barely hanging on to a positive return over the past year. At the time of writing, shares in the supermarket giant are up 1.3% in the 12-month period. Although, total returns (with dividends included) come to 10.8% during the same timeframe.

    For comparison, Coles Group Ltd (ASX: COL) is up 8.2% compared to a year ago without including dividends.

    The post Why is the Woolworths share price sliding 7% today? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Woolworths Group right now?

    Before you consider Woolworths Group, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woolworths Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

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

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  • The BrainChip share price just plunged 8%, what happened?

    A man in a business suit plunges down a big square hole lit up in blue.A man in a business suit plunges down a big square hole lit up in blue.

    It’s been a pretty depressing old time for ASX shares so far this Thursday. Today has seen the All Ordinaries Index (ASX: XAO) drop by 1.57% at the time of writing after an initial fall of just over 2% this morning. But the BrainChip Holdings Ltd (ASX: BRN) share price has had a far worse time of it today.

    BrainChip shares are presently down by a meaty 3.81% to $1.14 each after closing at $1.18 a share yesterday. That’s a vast improvement on where things stood earlier in the trading session though. Soon after market open, BrainChip descended all the way down to just $1.08 a share. That represented a drop of almost 8.5% at the time.

    So why is the BrainChip share price copping such a beating today?

    Why did the BrainChip share price plunge 8% today?

    Well, it’s got nothing to do with any news or announcements out of the artificial intelligence company (AI) itself. There haven’t been any ASX releases from BrainChip since 6 May. That was when the company was issued a speeding ticket from the ASX for a rather inexplicable 11% share price surge on a day when most shares were falling.

    Unfortunately for investors, BrainChip shares certainly aren’t bucking the market today.

    So we can possibly conclude that today’s BrainChip share price woes are a result of the sector-wide sentiment we seem to be seeing in ASX tech shares.

    Most ASX tech shares have endured a prune so far today. Altium Limited (ASX: ALU) shares are presently down around 4%. Xero Limited (ASX: XRO) is down more than 3%, while WiseTech Global Ltd (ASX: WTC) has lost close to 2%. BrainChip shares tend to move big when they move, so while today’s pricing has been dramatic, it’s arguably not entirely surprising.

    At the current Brainchip share price, this ASX AI share has a market capitalisation of $2.02 billion.

    The post The BrainChip share price just plunged 8%, what happened? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in BrainChip right now?

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