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The Block Inc (ASX: SQ2) share price will be one to watch on Friday.

This follows a market meltdown on Wall Street and the release of the payments giant’s first-quarter update.

Block share price on watch amid strong growth but big loss

• Gross payment volume (GPV) up 31% year on year to US$43.5 billion
• Net revenue down 22% to US$3.96 billion
• Net revenue excluding bitcoin revenue up 44% to US$2.23 billion
• Gross profit up 34% year on year to US$1.29 billion
• Net loss of US$204 million

What happened during the quarter?

For the three months ended 31 March, Block reported a 22% decline in revenue to US$3.96 billion. However, this was driven by softer cryptocurrency demand. Excluding bitcoin revenue, total net revenue in the first quarter was US$2.23 billion, up 44% year over year.

This was driven by a 72% increase in subscription and services-based revenue to US$960 million and a 28% lift in transaction-based revenue to US$1.23 billion. The latter reflects a 31% jump in GPV to US$43.5 billion.

As for earnings, Block generated gross profit of US$1.29 billion, up 34% year over year. This reflects a 26% increase in gross profit from Cash App to US$624 million and a 41% lift in Square gross profit to US$661 million.

The acquired Afterpay business contributed US$92 million of gross profit in the months of February and March, with US$46 million of gross profit recognised in each of Cash App and Square. Excluding Afterpay, gross profit was US$1.2 billion, up 25% year over year.

On the bottom line, Block record a net loss of US$204 million.

How does this compare to expectations?

According to consensus estimates, Block has missed on both its earnings and revenue for the period. The latter was US$180 million short of expectations.

However, the market appears to be looking beyond this. After falling 10.5% overnight on Wall Street because of the market selloff, the Block share price is rebounding in after-hours trade.

At the time of writing, the company’s NYSE-listed shares are up 8.5% after market. While this won’t claw back all of last night’s declines, it won’t be a bad as it was looking just an hour or two earlier.

Outlook

The catalyst for the Block share price recovery appears to have been the company’s outlook commentary. Block has started the second-quarter positively, with Square GPV growth accelerating in April.

It commented: “For the month of April, in aggregate, Square GPV is expected to be up 29% year over year. On a three-year CAGR basis, GPV growth is expected to be 24% in April, compared to 22% growth in the first quarter.”

“In April, we expect Cash App gross profit, excluding Afterpay, to grow on a year-over-year and three-year CAGR basis, driven by growth in monthly transacting actives, engagement across our ecosystem, and inflows into Cash App.”

The post Block share price on watch amid Q1 earnings miss appeared first on The Motley Fool Australia.

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• Why is the Block share price slipping 6% today?
• 3 beaten-up ASX All Ordinaries shares that surged higher 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 positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. 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 is the dream of every investor to be able to see a positive coming for a particular company before other people have woken up to it.

The team at Wilsons pride themselves on doing exactly that.

“One way of looking for value is looking at the underlying assets of the business and identifying discrepancies between the cumulative value of the operating units versus the market value of the stock,” they said in a memo to clients.

“These hidden value stocks rely on management action to highlight value to the market, such as an asset sale or a demerger.”

Some past examples of how they benefited from this approach are Link Administration Holdings Ltd (ASX: LNK), Aventus, News Corporation (ASX: NWS) and Telstra Corporation Ltd (ASX: TLS).

“We find this subset of the portfolio can provide above-market returns that are less correlated to the rest of the market.”

But what we all want to know is: what’s the next “hidden value” ASX stock?

Massive catalyst coming this month

Wilsons analysts have identified Tabcorp Holdings Limited (ASX: TAH) as one with a current disconnect between its actual worth and share price.

The big catalyst will be that the lotteries and betting divisions will soon be demerged, to form two separated listed businesses over late this month to early June.

The Wilsons team thinks this will have multiple benefits:

• Allowing each business to adopt a more focused operating profile and capital structure more aligned to its core operations
• 2 executive teams that can focus on each business more effectively
• M&A opportunities

But the really exciting outcome could be a potential “market re-rating” of the lotteries business.

There is much to like about lotteries, which Wilsons considers “a defensive, infrastructure-like business with long-dated licences”.

“Lotteries is growing its online presence which could lead to margin expansion,” its memo read.

“Lotteries is highly cash generative and capital-light.”

This business has so much going for it during a period of potential economic slowdown that a private owner could come in with a Godfather acquisition offer after the demerger.

“We believe a bid could also be made for the lotteries business after the demerger. Private equity firms typically like annuity-like, defensive companies, just like the lotteries business.”

Professional investors gaga over Tabcorp 

Wilsons is far from the only mob who loves the look of Tabcorp.

“We estimate that Tabcorp’s lotteries division generates a return on invested capital north of 50%!” said Airlie investment analyst Will Granger.

“The market continues to undervalue the infrastructure-like qualities of this lotteries division.”

Investors Mutual analysts are also licking their lips at Tabcorp’s potential.

“We continue to see long-term value in the lotteries business and believe that post demerger, M&A interest in both the lotteries and wagering businesses could resurface,” their memo to clients read.

Shareholders will vote on the Tabcorp demerger on 12 May.

Tabcorp shares are up less than 0.5% for the year so far.

The post ‘Hidden value’: The ASX share with a major catalyst coming appeared first on The Motley Fool Australia.

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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 Link Administration Holdings Ltd. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) returned to form and pushed higher. The benchmark index rose 0.8% to 7,364.7 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to end the week deep in the red following a selloff on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 109 points or 1.5% lower this morning. In the US, the Dow Jones sank 3.1%, the S&P 500 dropped 3.55%, and the Nasdaq crashed 5%. The Dow had its worst day since 2000.

Oil prices rise

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good finish to the week after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.7% to US$108.61 a barrel and the Brent crude oil price is up 1% to US$111.19 a barrel.

Macquarie full year results

The Macquarie Group Ltd (ASX: MQG) share price will be one to watch when the investment bank releases its full year results. According to a note out of Goldman Sachs, it is expecting the bank to report second half cash earnings of $2,800 million. This will be a 38% increase over the prior corresponding period. A $4.40 per share final dividend is also expected.

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.45% to US$1,877.2 an ounce. Investors were buying the safe haven asset amid the equities selloff.

NAB remains a buy

National Australia Bank (ASX: NAB) shares remain a buy according to Goldman Sachs. This morning the broker responded to the banking giant’s half year update by retaining its conviction buy rating and lifting its price target to $34.17. Goldman believes NAB is well-placed to continue its growth and remains the broker’s preferred sector exposure.

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

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the share market’s volume charts on Thursday
• Why are ASX 200 energy shares leaping higher today?
• ASX 200 midday update: NAB disappoints, Qantas announces acquisition
• Here’s all what you need to know about the latest NAB dividend

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 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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Leading ASX lithium shares have offered investors some of the best gains on the index over the past 12 months.

Now, not every lithium producer and explorer has shot the lights out amid fast-rising lithium prices. But plenty have.

Just have a look at these numbers.

While the All Ordinaries Index (ASX: XAO) has gained just under 4% since this time last year the Liontown Resources Limited (ASX: LTR) share price is up 257%; Core Lithium Ltd (ASX: CXO) shares have gained 402%; Pilbara Minerals Ltd (ASX: PLS) is up 139%; and shares in Lake Resources NL (ASX: LKE) have rocketed 606%.

We could go on.

With Australia currently ranked as the world’s fifth-biggest lithium producer, it’s little wonder investors are turning to ASX lithium shares as the price of the lightweight, conductive metal has been rocketing.

With that in mind, the Motley Fool asked Josh Gilbert, market analyst at multi-asset investment platform eToro, what’s been driving lithium demand and what the outlook is for prices heading forward.

Supply is still playing catch-up

“Lithium is the primary component of a lithium-ion battery,” Gilbert told us. “Demand for these batteries has skyrocketed in the last 15 months, resulting in its price rising over 400% in recent times.”

While lithium has other uses, most of the rocketing demand is coming from the rapid growth of electric vehicles (EVs), whose batteries rely on lithium to hold a charge.

“All electric vehicles available in the market – both now and for the foreseeable future – are based on lithium-ion batteries,” Gilbert said. “Their availability will affect EV prices and our progress in decarbonising transportation. Ultimately, lithium is the main element that the energy storage revolution depends on.”

As for why there’s a supply and demand imbalance driving lithium prices – and ASX lithium shares – skywards, Gilbert said:

Due to a lack of investment in the 2010s, lithium’s supply is still playing catch-up. It takes up to 5-7 years to establish a lithium mining operation from the ground up. We’re starting to see increased production in Australia and Argentina, but it’s still not enough.

Lithium is not rare. It can be found everywhere. However, extracting the raw material from the ground in commercial amounts for battery-grade use can be challenging. This means that for the immediate future, lithium is facing a significant supply and demand issue. With demand currently outweighing supply, investors should expect prices to continue on the upward trajectory and stay elevated.

What to consider before investing in ASX lithium shares

Now that we have a better understanding of the supply and demand dynamics facing the market, what should investors consider before buying ASX lithium shares?

The research can be tricky as many of these companies are smaller. And even some of the bigger names – like Core Lithium and Lake Resources – were only recently added to the ASX 300. Which can mean “there is very little information available publicly”, Jessica Amir, Australian market strategist at Saxo Markets said.

Amir recommends starting your research by answering five core questions.

First, visit the company’s website to find out where it’s mining.

Second, find out if there are any successful lithium mines in the area.

“Maybe the company is mining in Australia’s Pilbara Region, for instance, home to some of the world’s largest and most lucrative diversified mines. Or maybe it’s mining in the ‘lithium triangle’ in Argentina or Bolivia – home to the world’s largest lithium deposits,” she said.

“You can typically de-risk your investments, by backing a company operating in close proximity to a global major mining company – like BHP Group Ltd (ASX: BHP) or Ganfeng Lithium Co – as there is a higher probability of operational success,” Amir added.

Is the ASX lithium share exploring or producing?

The third question Amir recommends answering is whether the prospective ASX lithium share is close to businesses that need its product.

“An electric car manufacturer based in the United States would typically be more likely to buy lithium from a mine that’s in Argentina over Africa, for example. That’s because they’d only have to pay for 8,300 kilometres of haulage versus 14,000 kilometres from an African lithium miner,” she said.

Next, she recommends asking whether the prospective ASX lithium share is booking sales agreements for future production.

“If the company is not making money yet, look at the company outlook and determine when they will go into production,” she said.

Amir continued:

You want to be backing a company that will start to see money rolling in the door, as cashflow growth drives share price growth. So, ask if the company has signed an offtake deal. That’s a sales agreement where the miner sells a certain number of tonnes to another company.

Ideally the more of their future production that’s sold, the better, as that de-risks your investment. You always want the offtake agreement to be binding. This makes the sales contract agreement harder to tear up. If it’s not binding, there is more risk at hand, as the sales agreement offtake is usually subject to conditions being met.

Lastly, Amir recommends investors keen on ASX lithium shares find out whether their projects are located in a province likely to be supported by local government.

“For example, is it a critical mineral in the American regions that will likely be supported by [President Joe] Biden’s new potential stimulus?” she said. “Or, if it’s in Australia, will it be likely to receive Australian government support as paved out in the Federal Budget?”

The post Investing in ASX lithium shares? Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• 3 ASX 200 mining shares that surged more than 5% today
• Top brokers name 3 ASX shares to buy today
• Here’s why ASX lithium stocks are rocketing higher today
• Core Lithium share price is surging 7% on Thursday. What’s going on?

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 interested in adding some S&P/ASX 200 Index (ASX: XJO) shares to your portfolio, then the two listed below could be top options.

These ASX 200 shares have been named as buys with material upside potential. Here’s what you need to know about them:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX 200 share to look at is Aristocrat Leisure. It is a leading global gaming content and technology company and top-tier mobile games publisher.

Aristocrat has been growing at a strong rate over the last decade and looks well-placed for more of the same over the 2020s. This is thanks to its strong market position, the growing popularity of its games, and its real money gaming opportunity.

Morgans is a fan of the company. It has an add rating and $48.00 price target on its shares. The broker is forecasting strong top and bottom line growth over the coming years.

TechnologyOne Ltd (ASX: TNE)

Another ASX 200 share that has been rated as a buy is enterprise software provider TechnologyOne.

It is currently transforming from a traditional software company to a software-as-a-service (SaaS) focused business and with great success.

During the first half of FY 2022, the TechnologyOne Global SaaS ERP solution continued to grow rapidly, with SaaS annual recurring revenue (ARR) rising 43% to $192.3 million. Importantly, this growth was all organic and includes no acquisitions.

But it won’t be stopping there. Management is aiming to grow its high margin ARR to $500 million by FY 2026 and appears confident it will get there. As are analysts at Goldman Sachs, which believe the risks are to the upside for TechnologyOne’s ARR target.

It is partly for this reason that the broker recently initiated coverage on the company’s shares with a buy rating and $14.00 price target.

The post 2 ASX 200 shares that analysts say are buys appeared first on The Motley Fool Australia.

More reading

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• Goldman Sachs has just slapped buy ratings on these ASX tech shares

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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Are you interested in adding some ASX growth shares to your portfolio this month? If you are, you may want to look at the two listed below that have recently been named as buys by Goldman Sachs.

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

IDP Education Ltd (ASX: IEL)

The first ASX growth share to look at is this leading provider of international student placement services and English language testing services. After a difficult couple of years, IDP has returned to form in FY 2022 with a 70% jump in first half net profit after tax to $52.9 million. Pleasingly, since then, trading conditions have continued to improve, setting IDP up for an equally strong second half. Looking further ahead, IDP appears well-placed to benefit from long-term structural growth in international student volumes and IELTS testing. Particularly given its major acquisition in India last year.

Goldman commented: “We forecast 68% 3yr EPS CAGR (FY21-FY24E). The stock looks relatively attractive as it’s currently trading at a 12-mth fwd PE premium of 144% vs the ASX200 Industrials, which is below its historical average of 170%.”

The broker currently has a buy rating and $35.50 price target on its shares.

Webjet Limited (ASX: WEB)

Another growth share that Goldman Sachs rates highly is online travel agent, Webjet. As with IDP Education, it has had a very tough couple of years because of the pandemic. However, Goldman Sachs expects Webjet to come out the other side in a stronger position.

The broker said: “WEB (Buy) remains our preferred call in this space due to the stronger outlook for the Bedbanks business in the longer term, favorable exposure to the growing online channel and the strong balance sheet offering the opportunity to explore bolt-on acquisitions as well as weather interim volatilities driven by COVID-19.”

Goldman currently has a buy rating and $6.90 price target on Webjet’s shares.

The post 2 top ASX growth shares Goldman Sachs rates as buys appeared first on The Motley Fool Australia.

More reading

• Is the Webjet share price now a buy amid ‘strong’ travel demand?
• Why did the Webjet share price have such a good run in April?
• Why is the Webjet share price beating the ASX 200 today?
• These are the 10 most shorted ASX shares
• Why is the Webjet share price flying higher on Friday?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education Pty Ltd. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Today, the S&P/ASX 200 Index (ASX: XJO) broke a three-day losing streak following renewed optimism in markets on the back of the Federal Reserve’s rate decision last night. At the end of the session, the benchmark index finished 0.82% higher at 7,364.7 points.

In a refreshing change of scenery, there was almost not a single sector in the red across Aussie markets on Thursday. Unfortunately, the financial sector skimmed below breakeven after disappointing news was delivered by Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).

On the flip side, tech and energy shares shined the brightest today amid a slightly rosier outlook.

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

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Core Lithium Ltd (ASX: CXO) was the biggest gainer today. Shares in the lithium exploration company surged 8.75% following impressive results from US lithium products business Livent last night. Find out more about Core Lithium here.

The next best performing ASX share across the market today was Liontown Resources Ltd (ASX: LTR). Yes, that’s right — yet another ASX-listed lithium share making the podium on Thursday. Uncover the latest Liontown Resources details here.

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

ASX-listed company	Share price	Price change
Core Lithium Ltd (ASX: CXO)	$1.305	8.75%
Liontown Resources Ltd (ASX: LTR)	$1.465	7.72%
Pilbara Minerals Ltd (ASX: PLS)	$2.83	7.61%
Yancoal Australia Ltd (ASX: YAL)	$5.66	7.40%
Novonix Ltd (ASX: NVX)	$5.00	7.07%
Paladin Energy Ltd (ASX: PDN)	$0.825	6.45%
Reliance Worldwide Corporation Ltd (ASX: RWC)	$4.30	6.17%
Lake Resources NL (ASX: LKE)	$1.77	5.69%
Amcor Plc (ASX: AMC)	$17.69	5.68%
Home Consortium Ltd (ASX: HMC)	$6.53	5.49%

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

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

More reading

• 3 ASX 200 mining shares that surged more than 5% today
• Top brokers name 3 ASX shares to buy today
• Here’s why ASX lithium stocks are rocketing higher today
• Core Lithium share price is surging 7% on Thursday. What’s going on?
• These 3 ASX 200 shares are topping the share market’s volume charts on Thursday

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 positions in and has recommended Reliance Worldwide Corporation Limited. The Motley Fool Australia has positions in and has recommended Amcor Limited. The Motley Fool Australia has recommended Reliance Worldwide Corporation 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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It might seem old hat already, but no doubt the biggest piece of investing news (or just news) out this week was the decision by the Reserve Bank of Australia (RBA) to increase Australia’s interest rates for the first time in 11 years. Naturally, much of the coverage of this decision has focused on the impacts higher rates will have on homeowners. As well as the broader property market. But higher rates have big implications for ASX shares too.

Tuesday’s announcement took the cash rate from the record low of 0.1% to 0.35%. But even so, the RBA has made it clear that we should all expect more rate rises over the rest of the year. So let’s check out how higher rates could make for some ASX winners and losers.

RBA raises cash rate for the first time in 11 years

So the first thing to keep in mind is that higher interest rates mean higher repayments on most loans (not just mortgages). So right off the bat, we can say that any company with a large debt load is potentially in the firing line here.

That view is backed up by our own chief investment officer Scott Phillips. Here’s some of what Mr Phillips told news.com.au this week:

The companies who stand to lose the most are obviously those with a lot of debt whose interest bills will rise (probably meaningfully), hurting margins, profitability and therefore share prices. In a worst-case scenario, some might even collapse under the weight of suddenly more expensive debt.

But it’s not just those companies with large debts that could be in strife under a higher-rate world. Phillips added the following:

Second, companies with little-to-no pricing power will also find themselves in a challenging environment… Third, if interest rates do bite, discretionary economic activity will likely be somewhat curtailed and businesses falling into this category will likely see less demand – although this will vary dramatically depending on the nature of the business.

Something to keep in mind when looking at how your own portfolio might fare under higher interest rates. But what of the winning ASX shares?

Which ASX shares will win from higher rates?

Phillips identified one popular sector as a potential winner: ASX banks. He told the report that “banks might do well if they can use higher rates to fatten their margins”. He also said that “insurers who invest their premiums in cash and bonds will get a higher return on that money” when interest rates rise.

This was backed up by AMP Ltd (ASX: AMP) chief economist Shane Oliver. Mr Oliver told the report the following:

On the whole, banks are also going to feel positive effects from the change — provided all their customers aren’t financially ruined… It’s more positive than negative for banks, if people default on their loans then it’s bad, it could become a negative if there’s lots of defaults. But the RBA is not going to raise interest rates to a point of collapse [for people].

The post Running against rates! Which ASX shares could be the winners and losers? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 mining shares that surged more than 5% today
• Why these brokers think ARB shares are still a buy after their big crash
• 3 ASX 300 shares rocking new 52-week highs on Thursday
• Vulcan share price pops 5% on future lithium expectations
• Top brokers name 3 ASX shares to buy today

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

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The S&P/ASX 200 Resources Index (ASX: XJR) finished in the green today, but three ASX 200 mining shares soared higher than the index.

The ASX 200 Resources Index climbed 1.49% to 5,796.2 points. For comparison, the S&P/ASX 200 Index (ASX: XJO) also jumped 0.82% today.

Let’s take a look at which ASX 200 mining shares had a stellar day.

Pilbara Minerals (ASX: PLS)

The Pilbara Minerals share price surged 7.6% today. The company is one of many ASX lithium shares to enjoy a day in the green.

As my Foolish colleague James reported, this market sentiment appeared to be driven by a strong result from lithium giant Livent Corp (NSYE: LTHM) in the United States. Livent shares exploded 30% after the company performed ahead of market expectations. CEO Paul Graves spoke highly of the global lithium market. He commented: “Strong lithium demand has continued in 2022.”

Pilbara’s share price has surged 141% in a year but is down 11.5% this year to date. The company recently reported lithium prices jumped to record highs in the quarter ended March.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price rocketed 8.75% today. The company’s share price has risen 121% year to date and 392% over the past 12 months.

Core Lithium shares leapt today amid a strong day for ASX lithium shares. Other ASX lithium shares to rise include Allkem Ltd (ASX: AKE), up 4.79%,  Lake Resources N.L. (ASX: LKE), up 5.69%, and Liontown Resources Limited (ASX: LTR), up 7.72%.

Core Lithium has recently received environmental approval for the BP33 underground mine in the Northern Territory.

Chalice Mining Ltd (ASX: CHN)

Chalice Mining shares leapt 5.43% today. Chalice is exploring the Jumilar nickel, copper, and platinum group elements (PGE) project in the Avon region of Western Australia.

Copper prices are up 1.76% to US$4.4045 a pound, Trading Economics data shows. However, nickel prices have fallen 1.18%.

Chalice presented at the Macquarie 2022 Australia conference on Wednesday. The company noted Jumilar has the potential to be a “globally significant” source of class 1 nickel. Chalice said: “Julimar’s proximity to WA’s world-class power grid and infrastructure make it uniquely positioned to deliver low carbon intensity metals.”

The Chalice Mining share price has gained 5% over the past 12 months but is down 25% so far this year.

The post 3 ASX 200 mining shares that surged more than 5% today appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX lithium stocks are rocketing higher today
• Core Lithium share price is surging 7% on Thursday. What’s going on?
• These 3 ASX 200 shares are topping the share market’s volume charts on Thursday
• Why Alliance Aviation, Amcor, Core Lithium, and QBE shares are storming higher
• Why is the Pilbara Minerals share price rocketing 7% today?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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 ARB Corporation Limited (ASX: ARB) share price tumbled again today but some experts reckon this is a buying opportunity.

Shares in the four-wheel-drive accessories maker lost a further 1.13% today as they crashed to a more than one-year low of $33.23.

Today’s losses are on top of the 11.2% fall yesterday after the company’s disappointing trading update. It also follows smaller falls on Monday and Tuesday, meaning the ARB share price has slumped 17% since Friday’s close.

ARB hits earnings speed bump

The update showed slowing sales momentum in the quarter ended March across all segments when compared to the first half of 2022.

Importantly, a further slowdown is likely at the group level in the current quarter based on management’s FY22 guidance, according to Citigroup.

However, the broker isn’t put off and has reiterated its “buy” recommendation on the ARB share price.

“While slowing sales momentum is not positive for a stock which trades at an above-market multiple, we see attribute the slowdown to supply issues which should resolve in time and see demand holding up for now,” said Citi.

But this doesn’t mean it’s a smooth road ahead for ARB either. Supply chain disruptions continue to impact new car sales, labour shortages to install ARB accessories are still an issue, and rising interest rates could dent consumer demand.

However, Citi thinks the ARB share price still looks cheap. Management’s decision to double the capacity of its Thai manufacturing plant and its partnership with Ford give the broker reasons to feel confident about ARB’s future.

Nonetheless, Citi lowered its 12-month target price to $46.63 from $48.15 a share.

ARB share price can overcome temporary obstacles

Another broker that believes the ARB share price is looking cheap is Wilsons. It repeated its “overweight” recommendation on the shares with a 12-month price target of $43 a share. That implies a more than 30% upside if dividends are included.

“Demand remains strong, underpinned by a ‘consistently high’ order book and, in our view, the ongoing structural shift to 4X4s/SUVs,” said Wilsons.

 “Once supply constraints ease and supply chains improve, we expect structural sales growth to resume and note the incremental distribution capability available through ARB’s global collaboration with Ford.

“Recent price increases and favourable currency movements should support elevated margins in the near-term.”

The ARB share price has reversed over 11% in the past year compared to a 4% increase in the S&P/ASX 200 Index (ASX: XJO).

The post Why these brokers think ARB shares are still a buy after their big crash appeared first on The Motley Fool Australia.

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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 recommended ARB Corporation 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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