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The Fortescue Metals Group Ltd (ASX: FMG) share price climbed towards the end of April.

In the 30 days, the iron ore producer’s shares edged 4.7% higher. This puts the company above the S&P/ASX 200 Index (ASX: XJO), which fell almost 1% over the same timeframe.

However, Fortescue shares are struggling for the start of the new month, currently down 4.71% to $20.63. It appears investor sentiment has recently waned following a 4.44% decline in iron ore prices overnight.

What’s driven Fortescue shares higher?

While prices for the steelmaking ingredient deteriorated in April, sinking 9.35% to US$144.10 on 30 April, Fortescue shares remained defiant.

This is because of the positive March quarterly trading update that was provided to the ASX on 28 April.

Fortescue highlighted robust operational performance which drove record year to date iron ore shipments.

In addition, increased average revenue prices, along with boasting one of the world’s lowest-cost margins, supported the bumper result.

Management also noted the successful delivery and ramp-up of its Eliwana project, leading to upgraded FY22 shipment guidance.

It seems the sound third quarter scorecard, along with the mining giant’s lean business model, impressed investors.

Subsequently, Fortescue shares rose 8.11% on the day of the release.

What do the brokers think?

Following the trading update, a couple of brokers rated the company’s shares with varying price points.

The team UBS raised its 12 month price target by 9.4% to $18.70 for Fortescue shares.

However, Goldman Sachs had a more bearish tone, slashing its rating by 2% to $14.90 apiece.

Based on the current share price, this implies a potential downside of almost 30% for investors.

About the Fortescue share price

Up until the end of July, Fortescue shareholders were enjoying strong gains, hitting an all-time high of $26.58 per share. That all came crashing down in the following months, with its shares touching a low of $13.90 in October.

When looking at this time last year, Fortescue shares are down 8%, with year to date up more than 7%.

On valuation metrics, Fortescue commands a market capitalisation of roughly $63 million.

The post How did the Fortescue share price stack up in April? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX 200 mining shares in May?
• Top brokers name 3 ASX shares to sell next week
• What’s the outlook for the Fortescue share price in May?
• Fortescue share price lower after bearish broker note warns of dividend cuts
• ASX 200 mining shares just had their best trading day in 5 weeks. What’s next?

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

With the S&P 500 down more than 13% since the beginning of the year, investors have painfully relearned the lesson that stocks can go down as well as up. Especially when the market as a whole drops more than 3.5% in a single day,  the fear in the market is palpable.

Add the fact that rising interest rates can play havoc across multiple asset classes, and you get a set of conditions that could lead to a tough market for investing new money.

That raises a key question: Is this really the right time to invest in the stock market? Between investors’ current fear and the structural impact of rising interest rates, it certainly seems on the surface that now would be a terrible time to invest.

Yet if you are personally financially prepared and have the right mindset, now might actually be a great time to start seeking out bargains among stocks in today’s market.

How to be personally financially prepared

In order to be in the position to successfully invest in a potentially rocky market, you need to have your own financial house in order. Your debts should be at low-interest rates and easily covered by your cash flows. That way, you’ll be less at risk of selling while the market is down due to worry or a need to cover your bills.

In addition, you should have the mindset that you’re seeking to own the shares you’re buying for at least five years. The objective with that is not to force you to own your stocks for that long, but rather to get you thinking about the businesses behind those stocks and what they’re really worth. That state of mind will help you better recognize whether further drop-offs in a company’s stock price are a sign that its strategy is failing or whether it is simply becoming a better bargain.

To support that mindset, you should also be in a position where you don’t need to sell your stocks to cover your costs over the next five years. That can come through having income from another source (like working) or through having a large stash of cash or higher-certainty investments like CDs or an investment-grade bond ladder. That way, if the market continues to struggle, it’ll be easier to have the patience you need to wait things out until stocks start to recover.

How to seek out bargains

If there’s an upside to a down market, it’s that it makes the stocks of solid companies cheaper than they had been, when compared to those companies’ long-term prospects. After all, a share of stock is ultimately nothing more than an ownership stake in a business. That business can be valued based on its cash-generating ability. While those valuations are only estimates, they can often be good enough to figure out when a company truly looks like a screaming bargain.

The key is to leverage something known as the discounted cash-flow model to build your valuations. You start by estimating how much cash the company is going to generate in the future. Next, you assess how risky that cash flow projection is. With that projected cash flow and risk assessment, you then dial back (or “discount”) the value of those future cash flows based on that risk.

For instance, if you estimate that a company will generate $1 million in cash next year and your risk assessment suggests you need a 10% return on your investment, that $1 million would be discounted to $909,090.91. If the company is expected to generate another $1 million the year after that, that second year’s cash flow would be discounted to $826,446.28.  Those numbers represent the cash you need today to end up with the earnings you expect in the future if you earn the rate of return you’re discounting it by.

In other words, multiply $909,090.91 by 1.1 to represent a 10% return for one year, and you end up with $1 million. Multiply $826,446.28 by 1.1 twice to represent a 10% return compounded for two years, and you end up with $1 million.

Add together all those discounted future cash flows, and the result is your best estimate of the fair value for the company. If its market capitalization is below the valuation estimate you generated, then the company looks like a potential bargain.

If you find one, it’s worth double-checking to make sure the market isn’t factoring in a large risk that your model missed. If after you double-check, you remain convinced that the company looks like a bargain, it might very well be worth buying as part of your overall portfolio.

Get started now

Because you need to prepare your personal finances before you invest in a market as rocky as this one is likely to be, it makes sense to get a jump on things as quickly as you can. By getting that foundation in place, then starting your bargain-hunting, you just might find that now really can be the right time to invest in the stock market.

Just be sure to have the patience it takes to wait out what could very well be a rocky near term for even the best bargain stocks.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is this really the right time to invest in the stock market? appeared first on The Motley Fool Australia.

More reading

• How did the Fortescue share price stack up in April?
• CSL share price lifts as plasma collections continue recovery
• Woolworths share price rises after Q3 update beats consensus estimates
• This ASX gold share is soaring 57% following a lithium acquisition
• 2 high-yield ASX dividend shares buy-rated by analysts in May

Chuck Saletta 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The CSL Ltd (ASX: CSL) share price is in the green today after the company presented at the 2022 Macquarie Australia Conference in Sydney.

CSL shares are currently swapping hands at $275.38, a 1.82% gain. In contrast, the S&P/ASX 200 Index (ASX: XJO) is 0.1% lower at the time of writing.

Let’s take a look at what CSL reported today.

Why is the CSL share price lifting?

CSL informed the market that plasma collections are now at roughly the same level as prior to the COVID-19 pandemic.

In a presentation at the Macquarie conference, CSL also advised the company’s gross margin is predicted to return to pre-COVID levels in the future. CSL is working on technology improvements to plasma collection, reducing donation time by 30%.

CSL reported capital expenditure (CAPEX) is expected to be about $1.2 billion in FY22.

The company also highlighted the benefits of the Vifor Pharma acquisition. CSL is expecting regulatory approvals and closure on this deal by mid-2022.

CSL conducted a $750 million share plan for the acquisition in February, receiving strong support.

The CSL share price climbed nearly 2% in April amid multiple positive broker notes. Citi has placed a $335 price target on the company’s share price. This is nearly a 22% upside on the current share price.

CSL is predicting a net profit after tax (NPAT) of between $2.15 to $2.25 billion in FY22.

CSL share price snapshot

The CSL share price has climbed 1.55% in the past year but it has fallen more than 5% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 5% over the past year.

CSL has a market capitalisation of about $132.6 billion based on today’s share price.

The post CSL share price lifts as plasma collections continue recovery appeared first on The Motley Fool Australia.

More reading

• Here’s why the CSL share price beat the market in April
• 2 highly rated blue chip ASX 200 shares brokers rate as buys
• Is the CSL share price a bargain heading into May?
• Here’s what the 5 biggest companies on the ASX 200 today were worth in 2000
• How does the CSL dividend compare to its competitors?

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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The Woolworths Group Ltd (ASX: WOW) share price is pushing higher on Tuesday.

In afternoon trade, the retail giant’s shares are up approximately 1% to $38.62.

Why is the Woolworths share price pushing higher?

Investors have been bidding the Woolworths share price higher today after the retailer’s third-quarter update outperformed expectations.

According to the release, for the 12 weeks ended 3 April, Woolworths reported a 9.7% increase in sales from continuing operations to $15,123 million. As a comparison, the team at Goldman Sachs was forecasting group sales growth of 6.4% to $14.7 billion.

Woolworths third-quarter sales growth reflects the following:

• Australian Food sales increased 5.4% to $11,432 million
  • Woolworths Supermarkets sales up of 2.4% to $10 billion
  • Metro Food Stores sales up 7.3% to $241 million
  • WooliesX B2C eCommerce sales up 38.1% to $1.1 billion
• New Zealand Food sales rose 4.2% to $1,736 million
• Australian B2B sales up 217.3% to $995 million.
• BIG W sales fell 3.5% to $989 million

What was the verdict?

Goldman Sachs was pleased with the result and highlighted that it came in ahead of is own and the market’s expectations despite softer sales in New Zealand. It commented:

“WOW reported 3Q22 sales of +9.7% YoY and +2.6% beat vs GSe and +0.6% vs consensus. In particular, total Australian Food and Australian B2B combined (re-structured into two separate segments in 1H22) was +3.5% vs GSe. AU Foods comps came in +4.4% vs COL of +3.9%, GSe +4.0%, and consensus +2.4%.

NZ Supermarkets was below expectations due to a worse impact from Omicron-induced supply chain disruptions and global shipping challenges, and WOW announced that 2H22 EBIT will be NZ$120-140mn due to elevated COVID costs (GSe NZ$172mn) implying a potential 1.6%-3.0% shortfall to GSe Group EBIT forecasts for 2H. While Big W comps was -3.5% YoY, it was ahead of GSe -6.0% and off strong comps of +20.0% in 3Q21.”

Goldman currently has a buy rating and $38.30 price target on Woolworths’ shares.

Though, this recommendation and its valuation for the Woolworths share price could change in the coming days once it has fully digested the result.

The post Woolworths share price rises after Q3 update beats consensus estimates appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Woolworths’ Q3 update, AGL falls on Cannon-Brookes raid
• The ASX 200 shares that fund managers are buying and dumping
• Woolworths share price on watch amid strong Q3 sales growth
• 5 things to watch on the ASX 200 on Tuesday
• Is the Woolworths share price in the buy zone ahead of next week’s Q3 update?

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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The share price of ASX gold explorer Monger Gold Ltd (ASX: MMG) is being electrified on news the company has shaken hands on a lithium acquisition.

It’s agreed to buy up to 100% of the US Scotty Lithium Project for what Monger chair Peretz Schapiro says is a “very modest upfront cost”.

“Through development of the Scotty Lithium Project, as well as continuing to seek out additional accretive acquisitions, [Monger] intends to become a significant player in the lithium market,” Schapiro continued.

At the time of writing, the Monger share price is 44 cents, 57.14% higher than its previous close.

However, earlier today the company’s stock surged to 60 cents – representing a 114% gain.

Let’s take a closer look at the ASX gold stock’s new lithium venture.

ASX gold share to take on lithium project

The Monger share price is launching to a new all-time high on Tuesday following news it’s breaking into lithium exploration.

The ASX gold share has agreed to acquire up to 100% of American Consolidated Lithium (ACL) – an entity with rights to buy 700 unpatented placer mining claims.

Those claims make up the Scotty Lithium Project, covering approximately 14,000 acres in southern Nevada.

Monger has agreed to pay $2 million upfront for the acquisition of ACL.

“The majority of the consideration [is] contingent upon the delineation of a significant JORC Resource of up to 500Mt at a grade of at least 1,000 parts per million [of] lithium,” Schapiro said.

“This would be a very large resource – which illustrates the considerable upside of this acquisition.”

The project is located 70 kilometres from the US’s only lithium-producing mine and 330 kilometres from Tesla‘s Nevada Gigafactory.

The $2 million upfront payment will be paid via scrip, with eight million Monger shares offered at 25 cents apiece. The company will also provide four million options exercisable at 30 cents.

That will buy it 80% of ACL. The remainder can be purchased in two considerations of 10% each, upon certain exploration milestones.

Additionally, ACL can purchase the Scotty Project in five annual instalments, totalling US$170,000 cash. The first – worth $US$20,000 – is due on 30 June 2022.

The current claim owner will retain a 1% net smelter return royalty for the project. ACL can buy 0.5% of the net smelter return at any time for US$500,000.

The ASX gold share expects to begin explorations at the lithium project shortly.

It’s planning for soil sampling to begin in June. It’s also expecting to kick off a minimum 3,000 metre drilling program in the September quarter.

Monger share price snapshot

Today’s gains have boosted the Monger share price further into the long-term green.

Right now, the company’s stock is trading for 117.5% more than it was at the start of 2022. It’s also 60% higher than it was at its first close on the ASX in June 2021.

The post This ASX gold share is soaring 57% following a lithium acquisition appeared first on The Motley Fool Australia.

More reading

• 2 high-yield ASX dividend shares buy-rated by analysts in May
• What’s dragging the Mineral Resources share price lower on Tuesday?
• What happened to the IAG share price in April?
• Broker names the best ASX shares to buy right now
• Guess which ASX iron ore share has surged more than 260% in a month. Hint: it’s not Fortescue

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 Tesla. 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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ASX dividend shares with high yields could be investment opportunities in May 2022 according to analysts.

Businesses that are expected to pay higher dividends compared to typical ASX shares could be a way to boost investment income at a time when interest rates are still low.

Paying a dividend doesn’t automatically make a business worth owning, but analysts like the valuations of these two businesses:

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT). It owns a variety of commercial properties which are leased out to tenants that are viewed as resilient. It’s invested across office, industrial, retail, agri-logistics and telco exchange properties.

It’s rated as a buy by the broker Morgan Stanley with a price target of $5.85. That implies a possible double-digit capital return over the next year.

The broker is aware that rising interest rates could lead to higher costs for the business. However, the ASX dividend share could benefit from the CPI-linked rental contracts, which could offset the higher interest costs.

Morgan Stanley thinks that Charter Hall Long WALE REIT will pay a dividend yield of 5.9% for FY22 and 6.1% in FY23.

The high yield ASX dividend share has two key strategies. Number one is: “provide investors with stable, secure income and targeting income and capital growth through exposure to long WALE properties.” Number two is: “own high quality real estate on long term leases with strong tenant covenants.”

At 31 December 2021, its occupancy rate was 99.9% with a weighted average lease expiry (WALE) of 12.2 years.

Centuria Office REIT (ASX: COF)

This is another REIT. As the name suggests, it specialises in office properties.

The broker Morgans rates the business as a buy, with a price target of $2.50, implying a double-digit upside for the Centuria Office REIT share price. In the FY22 half-year result, the ASX dividend share reported that its net tangible assets (NTA) per unit increased to $2.49. It was the discount to the NTA that Morgans was attracted to.

Centuria Office REIT recently announced its FY22 third quarter update. It said that its portfolio occupancy increased to 94.1% as at 31 March 2022, with a weighted average lease expiry (WALE) of 4.1 years.

In that quarterly update, it said that it had exchanged contracts to sell 131 Grenfell Street in Adelaide for $20.9 million, which was at a 10% premium to the book value.

In FY22, the high yield ASX dividend share is expecting to generate 18.3 cents per unit of funds from operations (FFO), which is essentially the net rental profit. It is expecting to pay a distribution of 16.6 cents per unit in FY22. That’s a yield of 7.5% for FY22.

In FY23, Morgans thinks that Centuria Office REIT is going to pay a distribution of 17 cents per unit. That translates into a forward distribution yield of 7.7%.

The post 2 high-yield ASX dividend shares buy-rated by analysts in May appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX dividend shares with great yields to buy now
• 2 ASX dividend shares to buy this month: expert

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 Mineral Resources Ltd (ASX: MIN) share price is having a tough run today. This comes despite the mining services company providing an update on its recent senior unsecured notes offering.

At the time of writing, Mineral Resources shares are down 1.07% to $56.39.

Why are Mineral Resources shares pulling back?

While the company released a positive update at market open, the Mineral Resources share price has continued to seesaw.

The most likely catalyst is the retreat of iron ore prices, which will affect the company’s revenue margins.

After reaching a year to date high of US$161.84 per tonne on 4 April, the steel-making ingredient has sunk to US$144.08 today. This reflects a loss of 10.97% or US$17.76 in a space of just four weeks. 

A slowdown in Chinese economic growth amid the government’s COVID-19 lockdowns has led iron ore prices to plummet in value.

The second catalyst appears to be the broader market weakness. The S&P/ASX 300 Metals and Mining Index (ASX: XMM) is among one of the worst performers today, down 0.89% to 5,947.7 points.

The sector is made up of companies in the top 300 ASX companies involved with gold, steel, and precious metals.

Nonetheless, Mineral Resources advised it has completed its US$1.25 billion senior unsecured notes offering.

This comprises the first US$625 million senior unsecured notes priced at 8% per annum, maturing in 2027. The second US$625 million senior unsecured notes are priced at 8.5% per annum, expiring in 2030.

Management stated that it plans to use the cash proceeds for general corporate purposes, including for capital expenditures.

Mineral Resources share price snapshot

Year-to-date has produced relatively flat returns for Mineral Resources shares, up 1%. However, when factoring in the past 12 months, these gains are accelerated to almost 20% higher.

Based on valuation grounds, Mineral Resources presides a market capitalisation of roughly $10.70 billion.

The post What’s dragging the Mineral Resources share price lower on Tuesday? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX 200 mining shares in May?
• Top broker tips Mineral Resources share price to rise 25%
• Here’s why the Mineral Resources share price is leaping 5%
• 3 ASX 200 mining shares defying today’s sell-off to surge higher
• 5 things to watch on the ASX 200 on Wednesday

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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April proved to be a shaky month for the S&P/ASX 200 Index (ASX: XJO). Over the month just gone, the ASX 200 got pretty close to its all-time high, only to choke and end the month in the red by 0.86%. This, understandably, sparked some volatility amongst some of the ASX 200”s biggest players. So today, let’s check out what happened to the Insurance Australia Group Ltd (ASX: IAG) share price over April.

IAG is one of the largest insurance businesses on the ASX. It is the company behind the popular NRMA Insurance brand.

April was actually a decent month for the IAG share price, with the company outperforming the broader market. IAG shares started last month at a price of $4.38 but ended up higher at $4.54. That’s a modest gain of 3.65%. But that’s a lot better than what the ASX 200 gave investors, so no doubt IAG shareholders would be fairly pleased with that performance.

IAG is also outperforming the market over 2022 thus far as well. Year to date, the ASX 200 is still in the red by 3.16% on today’s numbers. But IAG shares have managed to stay in the green, rising by 0.67% since the start of the year. As it currently stands today, IAG is trading at $4.50 a share, up 0.67% for the day thus far.

Is the IAG share price a buy or a sell today?

So now we have an understanding of how IAG shares have fared recently, many investors might be wondering if this company is worth a buy today.

Well, as my Fool colleague Zach covered around a month ago, investment bank JPMorgan is one ASX broker who reckons IAG shares could be in the buy zone. JPMorgan rated IAG shares as a buy, with a 12-month share price target of $5.50. That would result in a significant 22.2% gain from today’s pricing if played out.

No doubt investors will be hoping that turns out to be the case.

At the current IAG share price, this ASX 200 insurance share has a market capitalisation of $11.07 billion, with a dividend yield of 2.96%. 

The post What happened to the IAG share price in April? appeared first on The Motley Fool Australia.

More reading

• How does the IAG dividend compare to QBE?
• The IAG share price has lost 10% since February. Is it an opportunity?
• How did the IAG share price compare to its sector in the March quarter?
• How did the IAG share price stack up in the March quarter?
• The IAG share price has dumped 5% in 2 weeks. What’s happening?

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in JPMorgan Chase. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The team at Morgans has been running the rule over a number of ASX shares once again.

Among its best ideas for May are the shares listed below. Here’s why the broker rates these ASX shares as buys with price targets implying over 20% upside potential:

Santos Ltd (ASX: STO)

If you’re looking for exposure to the energy sector then Santos could be the way to do it. Morgans currently has an add rating and $10.00 price target on the company’s shares.

The broker likes the company due to its diversified earnings base and attractive growth profile. Morgans said:

“We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.”

South32 Ltd (ASX: S32)

Not so keen on energy but looking at resources? Then South32 could be a quality option according to the broker. Especially following the transformation of the mining giant’s portfolio.

Morgans currently has an add rating and $6.10 price target on South32’s shares. The broker explained:

“S32 has transformed its portfolio divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.”

Treasury Wine Estates Ltd (ASX: TWE)

A final ASX share that is rated highly by Morgans is Treasury Wine. It is the wine giant behind a range of brands including Penfolds and 19 Crimes.

Morgans currently has an add rating and $13.93 price target on its shares. Morgans commented:

“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.”

The post Broker names the best ASX shares to buy right now appeared first on The Motley Fool Australia.

More reading

• The ASX 200 shares that fund managers are buying and dumping
• Here’s what makes Santos shares ‘a really exciting proposition’: expert
• 5 things to watch on the ASX 200 on Tuesday
• Broker says the South32 share price is cheap at current levels
• The Treasury Wine share price has tumbled 9% in 2022, so is the dividend yield worth its weight?

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 S&P/ASX 200 Index (ASX: XJO) may be in the red in the past month, but one ASX iron ore share is bucking the trend.

The Hawsons Iron Ltd (ASX: HIO) share price has surged 263%, from 29 cents at market open on 4 April to its current price of $1.055. In contrast, the benchmark ASX 200 Index has fallen about 2% over the same time frame.

Let’s take a look at why the Hawsons Iron share price is surging.

Major project status

The Hawsons Iron share price has been steadily increasing for most of the month. In today’s trade, the company’s share price is up 19.21% despite no news from the company.

This ASX iron ore company is exploring the Hawsons Iron Project, 60km southwest of Broken Hill in New South Wales. Hawsons secured 100% control of the project in late March. The company bought out Starlight Investment Company’s 6% interest in the venture.

On 12 April, Hawsons announced the federal government has renewed major project status on the project for another three years. In the letter of approval, federal energy minister Angus Taylor said:

The decision to grant major project status is based on the opportunity your project offers through supply of its high-quality magnetite product being a preferred input to the making of low emissions steel.

Hawsons reported a cash balance of $18.377 million in the third quarter of 2022. During the quarter, the Bankable Feasibility Study (BFS) scope and budget was expanded to assess a 20 million tonne per annum (MTpa) option for the mine. Commenting on this news, executive chairman Bryan Granzien said:

We owe it to our shareholders and stakeholders to investigate a 20 Mtpa operation to unlock the full potential of this large-scale iron ore resource.

The company reported iron ore prices jumped during the quarter in response to increasing demand from China. Hawsons noted this increase provided “further support for a pleasing lift in the company’s share price”.

Share price snapshot

The Hawsons Iron share price has surged a whopping 2,397% in the past year, while it has rocketed 603% year to date.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 4% over the past year.

Hawsons has a market capitalisation of roughly $754 million based on today’s share price.

The post Guess which ASX iron ore share has surged more than 260% in a month. Hint: it’s not Fortescue appeared first on The Motley Fool Australia.

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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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