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The National Australia Bank Ltd. (ASX: NAB) share price has been treading lower in the past three weeks.

While NAB shares finished 0.19% higher to $31.68 yesterday, this hasn’t been the case since 21 April.

In fact, the major bank’s shares have fallen around 6% followed by turmoil across global markets. This is because of fears surrounding interest rate hikes, inflation, and a poor earnings season for major Wall Street companies.

NAB shares set to go ex-dividend

Despite the volatility, some investors have been buying the bank shares following the company’s half year results last week.

This is most likely because of the upcoming ex-dividend date for NAB shares.

Investors need to buy NAB shares before market close today to be eligible for the interim dividend. The ex-dividend date is on Wednesday 11 May.

It’s worth noting though that historically when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can NAB shareholders expect payment?

For those who are eligible for the NAB interim dividend, shareholders will receive a payment of 73 cents per share on 5 July. The dividend is also fully franked which means shareholders can expect to receive tax credits from this.

In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead.

There is no DRP discount rate, however price will be determined by the daily volume-weighted average (VWAP) from 18 May to 31 May.

The last election date for shareholders to opt into the DRP is on 13 May.

The dividend reflects a statutory payout ratio of 66.9% which is in line with management’s stated dividend policy.

NAB share price snapshot

Since the beginning of 2022, the NAB share price has gained 10% and is up around 18% in the last 12 months.

The company’s shares reached a 52-week high of $33.75 last month, before treading lower in the following days.

NAB commands a market capitalisation of roughly $101.96 billion and has a trailing dividend yield of 4.01%.

The post Looking to secure the latest NAB dividend. Here’s what you need to do appeared first on The Motley Fool Australia.

More reading

• Is the NAB share price a buy amid this volatility?
• Is it too late to buy big bank ASX shares?
• What’s the outlook for the NAB share price following the bank’s latest results?
• Broker names 2 excellent ASX 200 dividend shares to buy
• 5 things to watch on the ASX 200 on Friday

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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Experts have rated some ASX dividend shares as buys, which could be opportunities for income.

A business isn’t automatically a buy just because it pays a dividend. Brokers are also looking for investments that look like they’re good value.

At the current share prices, experts have rated these two businesses as buys:

GQG Partners Inc (ASX: GQG)

GQG Partners is a large funds management business that offers investors a few different investment strategies to choose from. These are international equity, global equity, emerging markets equity, and US equity.

This ASX dividend share recently updated the market to reveal that in April 2022, its funds under management (FUM) went from US$92.9 billion to US$90.4 billion amid the global share market volatility.

It’s currently rated as a buy by the broker Morgans with a price target of $2.15. That implies a possible increase of more than 50% over the next year on its current share price of $1.37. While the broker acknowledges share market volatility can hurt its FUM and earnings, it thinks the business is at a good price and it’s still seeing fund inflows.

In the quarter for the three months to 31 March 2022, the ASX dividend share saw net inflows of US$3.4 billion “despite an extremely challenging macro environment”. The company said it’s seeing business momentum across geographies and channels.

The “vast majority” of its revenue comes from management fees rather than performance fees.

The largest shareholders in GQG are its management team, which it says remains “highly aligned” with shareholders and is focused on GQG’s future.

Morgans thinks GQG is going to pay a dividend yield of 9.5% in FY23.

Dexus Industria REIT (ASX: DXI)

This is a real estate investment trust (REIT) that focuses on office and industrial properties. In its FY22 half-year result released in February, Dexus — formerly APN Industria REIT — revealed it had 93 properties that were valued at $1.78 billion.

One of its recent acquisitions includes the 33.3% interest in Jandakot Airport in Perth, an industrial precinct comprising 51 assets, approximately 80 hectares of developable land, and airport infrastructure operations.

The ASX dividend share said its weighted average lease expiry was 5.9 years, with a total occupancy rate of 97%. It also said that 74% of the portfolio income is contracted to grow by 3% or more.

Dexus Industria REIT’s net tangible assets (NTA) per security was $3.55.

The REIT says its portfolio is well-positioned to continue to benefit from structural trends like e-commerce growth, “just-in-case” inventory management, and a “significant upswing” in Australian manufacturing. It also said it wants to provide a reliable income stream.

It’s expecting to pay an annual distribution of 17.3 cents in FY22. That’s a distribution yield of 5.5%.

This ASX dividend share is rated as a buy by the broker Morgans with a price target of $3.65. The broker is expecting an FY23 distribution yield of 5.6% in FY23. It thinks that it has a good yield, solid financial measures, and a good outlook.

The Dexus Industria REIT ended Monday’s session at $3.11.

The post 2 ASX dividend shares to buy this month: experts appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that could cash in on higher interest rates
• Analysts name 2 ASX dividend shares with big yields to buy
• Brokers love these 2 ASX dividend shares right now
• 2 high yield ASX dividend shares analysts rate as buys

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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The Transurban Group (ASX: TCL) share price has hit its stride over the last 2 months.

At the time of writing, the Transurban share price is $14.15, 13.2% higher than it was two months ago and 1.5% higher than it was at the start of 2022.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained just 1% over the last 2 months and it’s fallen 6% year to date.

But does the stock have the potential to go higher? Let’s take a look at why brokers think the toll road operator has a green future.

Does the Transurban share price offer more upside?

The Transurban share price has been outperforming the ASX 200 in 2022.

Plenty of stocks have been suffering this year, with many impacted by rising inflation and Australia’s first rate hike in years.

In fact, the S&P/ASX 200 Index (ASX: XJO) has slumped nearly 5% over the last 30 days. Meanwhile, the Transurban share price has continued its upward momentum. It has lifted 3.6% in that time frame.

And brokers expect its strong run to continue into the future.

Macquarie Group Ltd (ASX: MQG), Bell Potter, and Morgans see plenty of potential for upside in the toll road operator.

As The Motley Fool Australia’s Brendon Lau reports, Macquarie has tipped Transurban as an inflation hedge, saying it has pricing power built into its contracts.

Bell Potter is also bullish on the stock, but for different reasons. The broker expects the stock to beat the market over the long term, driven by its development pipeline.

The group’s current pipeline of growth projects is $3.9 billion … and further huge development opportunities are expected over the next few decades supported by population and economic growth.

Bell Potter, as quoted by my Fool colleague, James Mickleboro.

Finally, Morgans expects the company’s dividends to grow to 60 cents per share in financial year 2023. It also slapped Transurban shares with a $14.42 price target, reports Mickleboro.

The post The Transurban share price has leapt 13% in 2 months. Too late to buy? appeared first on The Motley Fool Australia.

More reading

• Macquarie picks ASX 200 shares to buy in this volatile environment
• Broker names 3 ‘champion’ ASX 200 shares to buy and hold
• What drove the Transurban share price higher on Monday?
• 2 ASX dividend shares analysts have named as buys for income investors
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in

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

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The Treasury Wine Estates Ltd (ASX: TWE) share price has come under pressure in 2022 amid the market volatility.

Since the start of the year, the wine giant’s shares have fallen 11% to $11.15.

This compares to a 6.2% decline by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Is the weakness in the Treasury Wine share price a buying opportunity?

According to a recent note out of Citi, its analysts see a lot of value in the Treasury Wine share price at the current level.

In response to an update out of an industry peer in the United States, the broker has retained its buy rating and $13.78 price target on the company’s shares.

Based on the current Treasury Wine share price, this implies potential upside of over 23% for investors over the next 12 months.

What did the broker say?

Citi highlights that Pernod Ricard has just released its third-quarter update which revealed that its US sales momentum is accelerating.

While acknowledging that Pernod Ricard’s strong sales momentum was from non-wine brands, it is interpreting the update as a sign of strong demand for alcohol as a whole in the key market.

Citi believes that this bodes well for the Treasury Americas business, which contributes almost a third of its overall earnings.

One slight negative, though, was that Pernod Ricard spoke about challenges in the China market due to lockdowns. Citi has concerns that this could be a risk for any Treasury Wine products arriving into the country through the grey channel.

The broker commented:

Pernod Ricard’s 3Q FY22 result (Mar 22 ending) revealed an acceleration in US sales momentum driven by strong demand in key brands. While the brands highlighted by Pernod were mostly non-wine brands, we see strong alcohol demand in the US post reopening, particularly in the on-premise channel, as a positive for Treasury Americas (~30% of FY22 EBITS). However, challenges in China as highlighted by Pernod due to lockdowns could be a risk for Treasury’s wine volumes which may be landing in China through the grey channel.

The post Broker tips the Treasury Wine share price to pop 23% higher appeared first on The Motley Fool Australia.

More reading

• Broker names 2 of the ‘best’ blue chip ASX 200 shares to buy now
• Broker names the best ASX shares to buy right now
• The Treasury Wine share price has tumbled 9% in 2022, so is the dividend yield worth its weight?
• Can the Treasury Wine share price recover from its post-China hangover?
• 2 ASX shares ripe to buy at current prices: 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is facing investor attention after the company reported its half-year results last week.

ANZ is one of the big four banks alongside Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), and National Australia Bank Ltd (ASX: NAB).

It is banking reporting season right now as every major bank releases a result or profit update. Macquarie Group Ltd (ASX: MQG) has also released its FY22 result recently.

Let’s take a look at what the ANZ result might mean for investors and its share price.

HY22 earnings wrap

ANZ said its statutory net profit after tax (NPAT) grew by 10% to $3.53 billion. However, the continuing operations cash profit actually fell by 3% to $3.11 billion. The continuing operations cash profit before credit impairments, tax, and large/notable items fell by 10% to $4.14 billion.

The board declared an interim dividend of 72 cents per share.

ANZ said its total provision release was $284 million, compared to a release of $76 million in the second half of FY21. The ANZ share price edged 0.44% higher when the results were released last Wednesday but has ended each subsequent session in the red.

Meanwhile, the bank said it saw “positive” balance sheet growth in Australia which was driven by home loan processing capability. There was also “strong” home loan momentum in New Zealand which delivered market share growth.

ANZ explained that institutional customer revenue grew “strongly” with risk-adjusted lending margins expanding.

The big four ASX bank also said that costs were “tightly managed” with ‘run the bank’ expenses being flat for the half with the investment focused on “operational resilience” and new growth opportunities.

Recently, ANZ launched its new retail banking platform called ANZ Plus. It has also been working on improving its home loan processing capacity in Australia. The bank said it is on target to grow in line with the Australian major banks by the end of FY22, but will do so as it keeps an eye on its profit margins.

In terms of the loan book performance, ANZ revealed that customers are “generally emerging from the pandemic in a position of strength, with healthy balance sheets and low levels of arrears across key segments”.

Management thoughts on the outlook

The ANZ CEO Shayne Elliot said:

Looking ahead, the economic environment is likely to be very different and we will continue to adjust our risk appetite, business setting and investment priorities as required. We are already seeing increased demand from our business customers and we are well placed to continue to support them as they manage in a world of higher inflation and interest rates.

For ANZ, we will continue to focus on the long term – investing for tomorrow and not just running today.

Is the ANZ share price a buy?

The ANZ share price ended Monday’s session at $26.03.

Macquarie currently rates ANZ as a buy, with a price target of $29.50. While the half-year result didn’t impress, the broker points out that interest rate hikes are expected to be beneficial for the net interest margin. Higher interest rates could be more useful to ANZ than other banks.

The broker Citi also rates ANZ shares as a buy, with a price target of $30.75. The end of its $8 billion cost goal means profit isn’t likely to be as high as previously expected in the next couple of years. Citi also thinks that higher interest rates will help the bank.

At the current ANZ share price, Macquarie thinks the bank will pay a grossed-up dividend yield of 7.9% in FY22 and 8% in FY23.

Citi’s projection for dividends means ANZ could pay a grossed-up dividend yield of 8.1% in FY22 and 9.3% in FY23.

The post Is the ANZ share price a buy and a dividend opportunity? appeared first on The Motley Fool Australia.

More reading

• Why is the ANZ share price sliding on Monday?
• Is it too late to buy big bank ASX shares?
• Top brokers name 3 ASX shares to buy next week
• Hoping to secure the next ANZ dividend? Here’s what you need to do
• Top brokers name 3 ASX shares to buy today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Ask a Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In part 1 of this edition, Michael Steele, co-portfolio manager at Yarra Capital Management, explains the strategies driving the UBS Yarra Australian Small Companies Fund’s ASX small-cap share investment outperformance.

The Motley Fool: How would you describe the UBS Yarra Australian Small Companies Fund to a potential client?

Michael Steele: Firstly, we’re investing in small-cap companies on the Australian securities exchange. That means we’re investing in companies outside of the ASX 100.

Secondly, the stocks we are investing are from a bottom-up perspective. All the stocks we invest in are based on company specific insights that are developed by our investment team.

Thirdly, when you look at our strategy overall, it’s generated really strong outperformance over time. It’s been in operating for the last six years, and outperformed the S&P/ASX Small Ordinaries Accumulation Index by 6.8% per annum.

MF: What about risk management within the portfolio?

MS: Yes, that’s the fourth point to note.

We have a really high focus on risk management within the investment process. Importantly, that comes through in returns. If you look at the volatility of returns over time, it’s quite low with strong risk-adjusted returns.

We do that by considering ESG [environmental, social and governance] risks, and by considering the durability of cash flows. Does the company have a sustainable balance sheet? And also, we look at how our different positions interact with each other.

The final point is we are generally long-term investors. So, we buy all companies with at least a three-year time horizon. If you look at the portfolio, on average we hold companies for four years.

MF: You invest in the smaller end of the ASX. Is there a minimal market cap you won’t go below?

MS: Typically, we want to invest in companies that are outside of the top 100 that have a market capitalisation greater than $250 million. We define companies below $250 million as microcaps, so we don’t invest in them. We have another portfolio manager in the broader team with a focus on microcaps.

MF: What are the advantages of investing in the smaller end of the market compared to the top 100 ASX blue-chips?

MS: Firstly, there’s a larger information inefficiency. There’s a much higher potential for an alpha, or outperformance, in the small-cap part of the market because there’s much less research and publicly available information. We add value by doing our own research and understanding companies, compared to the ASX 100, where there’s a much more efficient and researched market.

Secondly, small-cap companies, in general, tend to be higher growth. You’ve got companies that are earlier in their lifecycle. They’re developing, they’re growing from a smaller base, they’re earlier stage businesses. And you generally have higher growth and you don’t have legacy headwinds.

And the third point is there’s a much broader investment universe. With ASX small-caps, we’ve got a much larger cohort of companies to look at. And you don’t have a big sector concentration, which provides much more diversity in what you can invest in.

If you look at the ASX 100, 30% of that market is financials, whereas we only have about 10%. So, we’ve got greater flexibility to invest in a range of different sectors and which can generate a range of different outcomes for clients.

MF: Those are some significant advantages. On the flip side, what are the risks of investing in a portfolio of ASX small-cap shares?

MS: If you look back through time, the small-cap market tends to have greater volatility when you have equity market corrections. We seek to construct our portfolio with lower risk by investing in companies that have got durable cash flows and strong balance sheets. So, when you have market corrections, we hope to preserve capital better than the benchmark.

***

Tune in tomorrow for part 2 of our interview, where Yarra Capital’s Michael Steele unveils his fund’s two top ASX small-cap share picks.

(You can find out more about the UBS Yarra Australian Small Companies Fund here.)

The post The secret to an outperforming ASX small-cap share portfolio: fund manager appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares to buy as Aussies tighten their belts
• Broker names 2 of the ‘best’ blue chip ASX 200 shares to buy now
• 2 ASX shares at ‘appealing’ buy prices right now
• 5 things to watch on the ASX 200 on Tuesday
• 3 fantastic ETFs for ASX investors to buy this week

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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After more than 11 years, Australia finally saw interest rates head upwards last week.

The Reserve Bank’s 25 basis-point boost in the cash rate was a rude awakening for an entire generation of consumers and homeowners that have never seen their debt obligations increase.

What does this mean?

The whole point of the RBA’s move is, not just to be a pain for the sake of it, but to stop people spending money in order to bring down inflation.

So if that goal is achieved, which ASX shares will not be anxious about a dramatic plunge in revenue?

One strategy is to back the companies that sell goods and services that Australians just cannot do without, regardless of the economic cycle.

Sequoia Wealth Management advisor Peter Day had a couple of “buy” ideas:

Drinks whether you’re at home or going out

The structure of Endeavour Group Ltd (ASX: EDV) is clever in that it has both a liquor retailing arm and hospitality business.

When people stayed home during the long COVID-19 lockdowns, its retail unit thrived as bored Australians sought to drink at home.

Then as vaccination rates soared and state governments loosened restrictions, its pubs and hotels saw improved business.

Now if Australians put away their wallets after their mortgage repayments rise, they may head back to drinking at home.

For Day, a recent acquisition is also a tailwind.

“Endeavour, in partnership with Warakirri Asset Management, have acquired Josef Chromy Wines in Tasmania for $55 million,” he told The Bull.

“We view the acquisition as a positive step. It’s consistent with our view that Endeavour is seeking margin accretive opportunities.”

Day suspected Josef Chromy would be added to the Pinnacle Drinks unit within Endeavour.

“Growth in Pinnacle brands and hotels are key opportunities underpinning our buy recommendation.”

If two analysts say the same thing, then this must be a buy

You will have shopped in one of Wesfarmers Ltd (ASX: WES)’s retail chains at one time or another: Bunnings, Kmart, Officeworks and Target.

Those stores sell everyday items that Australians will still need, regardless of whether they are taking on additional mortgage costs.

Wesfarmer’s brands make up a “quality retail portfolio”, according to Day. 

“Bunnings remains a solid performer, as people continue to invest in their homes.”

The stock price has been pummelled in recent times, plunging more than 18% so far this year and almost 26% since August.

But this just makes it even more tempting to buy for Day.

“We see the recent share price retreat providing a good entry point for investors,” he said.

“The Wesfarmers management team is highly [regarded] and the balance sheet is healthy.”

Morgans analyst Andrew Tang expressed the same view last week in almost the same words in his Best Ideas memo.

“We see the recent pullback in the share price as a good entry point for longer-term investors,” he said.

“The core Bunnings division remains a solid performer as consumers continue to invest in their homes.”

Tang also nominated Endeavour as one of his current buy recommendations.

The post 2 ASX shares to buy as Aussies tighten their belt appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Broker names 2 of the ‘best’ ASX dividend shares to buy next week
• Guess which ASX 200 shares are defying today’s sell-off to climb higher
• Why is the Wesfarmers share price defying today’s ASX 200 bloodbath?
• Wesfarmers share price slips as Bunnings competition heats up

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

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The team at Morgans has been looking over a number of ASX 200 shares once again.

Among its best ideas for May are the blue chip ASX 200 shares listed below. Here’s what you need to know about them:

ResMed Inc (ASX: RMD)

The first ASX 200 share that could be in the buy zone according to Morgans is ResMed. While the broker suspects that supply chain issues could make things volatile in the near term, it remains very positive on the long term.

While we believe the next few quarters will likely be volatile, as Covid-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

Morgans has an add rating and $39.23 price target on ResMed’s shares.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX 200 share that could be a top option for investors is Treasury Wine. Morgans rates the wine giant highly due to its strong portfolio and its recent restructuring. All in all, it feels this has positioned the company for strong growth over the coming years.

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The company recently reported an impressive 1H22 result despite facing a number of material headwinds. The foundations are now in place for TWE to deliver strong double-digit growth from 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Morgans has an add rating and $13.93 price target on Treasury Wine’s shares.

The post Broker names 2 of the ‘best’ blue chip ASX 200 shares to buy now appeared first on The Motley Fool Australia.

More reading

• Hoping to bag the Resmed dividend? Read this
• Guess which ASX 200 shares are defying today’s sell-off to climb higher
• 2 medical tech ASX shares Morgans loves right now
• Broker names the best ASX shares to buy right now
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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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Unfortunately the S&P/ASX 200 Index (ASX: XJO) has plunged almost 4.8% over the past month as investors’ nerves have been tested.

There is much anxiety about inflation and rising interest rates — not to mention a vicious invasion of a democratic country in Europe.

But with volatility comes opportunity. 

Fairmont Equities managing director Michael Gable nominated 2 ASX shares he would pounce on right now:

Lithium miner going for cheap

Lithium producers are all the rage these days, with the element in hot demand as an ingredient for high-end batteries.

Despite this, Australian lithium miner Pilbara Minerals Ltd (ASX: PLS) has seen its share price sink almost 16% in the past month, to close Monday at $2.56.

“The share price has fallen from $3.62 on April 4,” Gable told The Bull.

“The price fall provides an appealing buying opportunity, in our view.”

According to The Motley Fool colleague James Mickleboro, the stock price weakness is not related to the business internally, but rather a market-wide pullback on lithium.

“The lithium industry has been hit particularly hard, with Pilbara Minerals just one of many lithium shares that are recording sizable declines.”

Gable agrees, noting business metrics for Pilbara look good.

“This lithium company recently posted a solid March quarter activities report. Lithium prices continued to climb, while cash costs fell,” he said.

“Production is expected to increase during 2022.”

Despite the recent pullback in the stock price, Pilbara shares are still double what they were 12 months ago.

Is this former darling ready to rocket again?

After being a star performer for decades, the COVID-19 era over the past couple of years has seen CSL Limited (ASX: CSL) shares go nowhere.

But Gable, who is an expert in share price movement (technical) analysis, reckons the biotechnology stock could be ready to break out.

“The share price of this blood products group has been mostly range bound for the past two years,” he said.

“CSL recently bounced off the lower part of its trading range, and upward share price momentum paints a positive outlook.”

The Australian giant has a large plasma collection business in the US, which took a huge hit during the pandemic with donors staying home.

Gable suspects this arm can’t do anything but improve from here.

“We expect buyer support in response to improving collections of plasma.”

CSL shares have dropped more than 8.3% for the year, and remain at almost the same price as when the March 2020 coronavirus crash struck.

The post 2 ASX shares at ‘appealing’ buy prices right now appeared first on The Motley Fool Australia.

More reading

• How did the CSL share price escape the carnage today?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Macquarie picks ASX 200 shares to buy in this volatile environment
• Low charge: Is the party over for ASX lithium stocks?
• 4 ‘defensive growth’ ASX shares to buy in turbulent times: Wilsons

Motley Fool contributor Tony Yoo has positions in CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in the red. The benchmark index fell 1.2% to 7,120.7 points.

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

ASX 200 expected to fall again

The Australian share market looks set to continue to sink on Tuesday after another selloff on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 97 points or 1.35% lower. On Wall Street, the Dow Jones fell 2%, the S&P 500 dropped 3.2%, and the Nasdaq crashed 4.3%.

Tech shares under pressure

Things look set to go from bad to worse for Australia’s tech sector on Tuesday. The likes of Appen Ltd (ASX: APX) and Block Inc (ASX: SQ2) are likely to fall deep into the red following a selloff in the US tech sector. Block’s US listed shares crashed a sizeable 13% during overnight trade on the NYSE.

Oil prices sink

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 6.4% to US$102.74 a barrel and the Brent crude oil price has fallen 6.2% to US$105.46 a barrel. Traders were selling oil amid concerns over China’s lockdowns.

Gold price tumbles

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a bad day after the gold price sank overnight despite the market selloff. According to CNBC, the spot gold price is down 1.6% to US$1,851.5 an ounce. The precious metal was sold off after US bond yields rose

Wesfarmers rated as a sell

The Wesfarmers Ltd (ASX: WES) share price could be heading lower from here according to analysts at Goldman Sachs. This morning the broker reiterated its sell rating with a $38.60 price target on the conglomerate’s shares. This implies potential downside of over 20% for investors. Goldman expects Wesfarmers to be impacted from softening consumer demand due to broad-based inflation and higher housing costs.

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

More reading

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• ‘Do not panic’: Experts explain how to stay calm and carry on investing amid rising interest rates
• Do Beach Energy shares pay dividends?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Macquarie share price tumbles 4% to 9-week low. Is it time to pounce?

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 Appen Ltd and Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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