Tag: Motley Fool

If you’ve been on an aeroplane lately, you’ll know that travel is back in a big way.

National daily cases of COVID-19 topped 42,000 this week, which is a number that would have horrified any of us one year ago.

But with high vaccination rates and low hospitalisations, Australians seem to have regained confidence about flying in a tin can with hundreds of others to go for that long-awaited holiday or work trip. 

Just over Easter, Sydney Airport could not handle the number of passengers trying to check in, with queues snaking onto the road outside the terminal.

Through the congestion my family only managed to board our 8:40am flight at 8:38am, thanks to the generosity of the airline crew who held the door open for us.

For Sage Capital portfolio manager Kelli Meagher, all this means is that there is a massive boom underway for ASX travel shares.

“The reason we like the travel sector is that it marches to the beat of its own drum no matter what’s happening from a broad, macro perspective,” she told Switzer TV Investing.

“There’s so much pent-up demand for travel. Here in Australia, there’s a whole lot of excess savings that… they’re really keen to spend.”

There are three specific ASX shares in this industry that Meagher likes at the moment.

‘We don’t even have to see a full rebound’

Most travel businesses were forced to raise capital to stay afloat during the pandemic, as they burned through cash for operations while revenue dried up.

But not Corporate Travel Management Ltd (ASX: CTD).

“Corporate Travel was pretty much the only one that didn’t raise money to survive. They raised money to make some pretty clever acquisitions.”

This sets the company up for huge post-COVID growth, according to Meagher.

“We like Corporate Travel over the longer term just because it is now in a much stronger position to gain market share,” she said.

“We don’t even have to see a full rebound of corporate travel back to [pre-COVID] levels… for Corporate Travel to grow its earnings, because it’s a market share and margin game.”

The Corporate Travel share price has risen more than 14% this year so far, and a tidy 42% over the past 12 months.

Meagher likes Australia’s dominant airline Qantas Airways Limited (ASX: QAN) for entirely different reasons.

Fortunes of aviation businesses heavily depend on how much they have to pay for fuel, which is linked to crude oil prices.

While oil has become very expensive over the past few months, Meagher feels like Qantas has done a great job of shielding itself.

“They’ve got their fuel hedging very well sorted, at least till the end of the year.”

Meagher also loves how its dominant market position gives Qantas extraordinary power to set its own prices.

“Any extra fuel costs should be able to be passed through to the consumer, who’s still pretty keen to travel,” she said.

“Anyone keen to go on a holiday and was going to pay $200 for their tickets probably will be okay to pay $220.”

Qantas shares are up 11.78% so far this year.

Meagher’s third pick requires the business to put in significantly more work than Qantas and Corporate Travel to get its share price climbing back to past glories.

But she suspects Flight Centre Travel Group Ltd (ASX: FLT) shares are on their way up “simply because it’s a well-known name” and is a “go-to stop for many investors who want exposure to travel”.

“They are fighting a lot more headwinds than someone like Corporate Travel, because they’re fighting things like airlines cutting commissions.”

With loss-making airlines trimming their costs and reducing payouts to travel agents, Meagher reckons Flight Centre might have to create new sources of revenue.

“They’re going to have to make their money somewhere else, maybe by charging when you walk into a Flight Centre [store]… to sit down and talk to someone about your itinerary.”

The Flight Centre share price is more than 28% above where it started the year.

The post Travel’s back! 3 ASX shares this expert loves right now appeared first on The Motley Fool Australia.

More reading

• Why this fundie is tipping 120% upside for the Qantas share price
• Why is the Flight Centre share price trouncing ahead of the ASX 200 today?
• Why are ASX 200 travel shares having a first-class end to the week?
• When did Qantas last pay a dividend?
• How long will the Flight Centre share price keep getting battered by COVID-19?

Motley Fool contributor Tony Yoo has positions in Corporate Travel Management Limited. 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 Corporate Travel Management Limited and Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/2oPIpjb

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished a difficult week in a very positive fashion. The benchmark index charged 1.05% higher to 7,435 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to start the week deep in the red following a very poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 94 points or 1.25% lower this morning. On Wall Street, the Dow Jones fell 2.8%, the S&P 500 dropped 3.6%, and the Nasdaq sank 4.2%.

Oil prices fall

Energy producers Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a subdued start to the week after oil prices dropped. According to Bloomberg, the WTI crude oil price fell 0.65% to US$104.69 a barrel and the Brent crude oil price dropped 0.1% to US$107.14 a barrel. Lockdowns in China have been weighing on demand.

ResMed share price is in the buy zone

The team at Goldman Sachs believes the ResMed Inc (ASX: RMD) share price weakness last week is a buying opportunity. This morning the broker retained its buy rating but trimmed its price target to $33.70. This implies potential upside of almost 16% for investors. While near term supply chain pressure remains acute, the long term opportunity remains.

Gold price rises

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price stormed higher on Friday night. According to CNBC, the spot gold price rose 1.1% to US$1,911.7 an ounce. Traders were buying gold after demand for safe haven assets increased.

PointsBet shares could be dirt cheap

The Pointsbet Holdings Ltd (ASX: PBH) share price could prove to be dirt cheap if Goldman Sachs has made the right call. Another note out of the broker reveals that its analysts have retained their buy rating with a $5.78 price target. This is almost double the current PointsBet share price. It said: “While sentiment in the sector remains challenging (high growth/long duration), operating results remain solid and the MT opportunity remains intact.”

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

More reading

• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Why Kogan, Reliance, ResMed, and Sandfire shares are dropping
• Why Nitro, PointsBet, Sezzle, and Siteminder shares are racing higher

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

from The Motley Fool Australia https://ift.tt/u3VcYHh

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Bega Cheese Ltd (ASX: BGA)

Analysts at Goldman Sachs have downgraded this diversified food company’s shares to a sell rating with a $5.15 price target. The broker made the move largely on valuation grounds. It notes that Bega’s shares are trading in line with its valuation whereas its coverage average offers 33% upside. Goldman also has concerns about the headwinds facing the Australian Dairy Industry and the potential impact on future earnings. The Bega Cheese share price was trading at $5.05 on Friday.

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Morgans, its analysts have retained their reduce rating and $77.00 price target on this banking giant’s shares. While the broker expects a rising interest rate environment to generally be supportive of major bank margins in net terms, it isn’t convinced that such an environment will be a walk in the park for the banks. Morgans highlights that higher interest rates will likely place downward pressure on asset prices and credit growth, as well as increasing the risk of asset quality deterioration. Outside this, the broker feels the bank’s shares are overvalued at the current level. The CBA share price ended the week at $103.88.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted their price target to $15.00. This follows the release of a quarterly update which revealed slightly higher than expected shipments and pricing that was largely in line with forecasts. However, this isn’t enough for a change of rating. Credit Suisse continues to struggle to justify the company’s valuation in comparison to peers and believes the risks are to the downside. The Fortescue share price was fetching $21.63 at Friday’s close.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for the Fortescue share price in May?
• Fortescue share price lower after bearish broker note warns of dividend cuts
• Can the CBA share price maintain its premium to the other ASX banks?
• ASX 200 mining shares just had their best trading day in 5 weeks. What’s next?
• 5 things to watch on the ASX 200 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 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.

from The Motley Fool Australia https://ift.tt/2WZEFjr

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

According to a note out of Morgan Stanley, its analysts have resumed coverage on this pizza chain operator with an overweight rating and $100.00 price target. The broker believes investors should look beyond short term headwinds such as lockdown boosts a year earlier and food inflation and focus on its long term growth potential. This is being underpinned by the company’s plan to double its store footprint globally. The Domino’s share price ended the week at $75.31.

Life360 Inc (ASX: 360)

A note out of Bell Potter reveals that its analysts have retained their buy rating but cut their price target on this location technology company’s shares to $8.25. Bell Potter highlights that Life360 performed ahead of its expectations during the first quarter, with paying circles, core annual monthly revenue, global monthly active users, and core revenue all growing quicker than its estimates. And while the broker was disappointed with the  company’s cash flow, it believes this will materially improve in Q2 and Q3 and then be positive in Q4. The Life360 share price was fetching $4.03 at the end of the week.

Pilbara Minerals Ltd (ASX: PLS)

Analysts at Citi have retained their buy rating and $3.60 price target on this lithium miner’s shares. This follows the release of the company’s third quarter update, which revealed another jump in lithium prices and expectations for further increases. And while the broker isn’t convinced Pilbara Minerals will achieve its production growth target this year, it isn’t enough to dampen its bullish view. The Pilbara Minerals share price ended the week at $2.85.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Why analysts say investors should buy these beaten down ASX shares
• These were the worst performing ASX 200 shares last week
• The Domino’s share price just hit a 52-week low. Is it time to tuck into some?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here’s why ASX 200 tech shares are having such a stellar end to the week

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/JlHFgb1

The Fortescue Metals Group Limited (ASX: FMG) share price went up this week after the ASX mining company released its quarterly update.

In the three months to 31 March 2022, Fortescue upgraded how much iron ore it is expecting to ship in FY22.

Highlights from the third-quarter update

The miner shipped 46.5 million tonnes for the quarter, which was 10% higher than the third quarter of FY21. This contributed to record shipments for the nine months to 31 March 2022 of 139.5mt.

The business increased its FY22 guidance for iron ore shipments to 185mt to 188mt, up from a range of 180mt to 185mt.

Not only did the business ship more, but it saw average revenue of US$100 per dry metric tonne, representing revenue realisation of 70% of the Platts 62 CFR Index for the quarter, up from 68% in the second quarter of FY22.

However, costs are also increasing. The quarterly C1 cost was US$15.78 per wmt, up 3% from the previous quarter. The guidance for the FY22 C1 cost has been revised to a range of US$15.75 to US$16 per wmt, up from US$15 to US$15.50 per wmt.

The Iron Bridge project capital estimate has also been increased to between US$3.6 billion to US$3.8 billion, up from US$3.3 billion to US$3.5 billion. The company blamed COVID-19 related labour constraints, a tight labour market, supply chain issues, higher construction costs, as well as higher logistics and shipping costs, which have worsened due to recent lockdowns in China.

Is the Fortescue share price an opportunity?

According to reporting by the Australian Financial Review the broker UBS has increased its price target for the Fortescue share price by over 9% to $18.70. However, the rating is still neutral on the ASX mining share.

The AFR quoted UBS, which said:

Current high spot prices and potential for China stimulus to keep prices higher for longer should support shareholder returns, but over the long term we remain cautious on iron ore. China’s stimulus response to current COVID conditions remains an upside risk to our forecast.

However, there are other brokers that are even less optimistic about the Fortescue share price.

Credit Suisse has a price target of $15. That implies a potential fall of around 30% over the next year. It thinks that it is valued too expensively compared to other mining shares. However, this price target was increased to $15 from $14.

On Credit Suisse numbers, the FY22 Fortescue grossed-up dividend yield is 12% and then 8.7% in FY23.

The post What’s the outlook for the Fortescue share price in May? appeared first on The Motley Fool Australia.

More reading

• 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?
• 5 things to watch on the ASX 200 on Friday
• Why AMP, Fortescue, Pilbara Minerals, and Sandfire shares are racing higher
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. 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.

from The Motley Fool Australia https://ift.tt/APEcM1r

With only two months of the 2022 financial year remaining, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to buy in May. Here is what the team came up with:

Tristan Harrison: Airtasker Ltd (ASX: ART)

The Airtasker share price has fallen by around 50% over the last half-year, but the company continues to grow its revenue.

In the FY22 third quarter, Airtasker’s revenue surged by 21.2% to $8.6 million, with a positive operating cash flow of $1 million. Gross marketplace volume for the United Kingdom rose by 138% year on year, while the United States posted task growth of 90% quarter on quarter.

Airtasker co-founder and CEO Tim Fung was “super pleased” with this update, despite the impacts of rainfall and flooding in Australia. The business is also currently investing in new segments of the local services economy in Australia.

Morgans rates Airtasker shares as a buy, with a price target of $1.15. This represents over 140% upside to Friday’s closing price of 47 cents.

Motley Fool contributor Tristan Harrison does not own shares of Airtasker Ltd.

Bernd Struben: Aussie Broadband Ltd (ASX: ABB)

Telecommunications company Aussie Broadband has been growing fast. It is now the fifth-largest NBN provider in Australia, with more than 540,000 active broadband services. Aside from its internet services, the company’s other product lines include VOIP (voice over internet protocol), mobile plans, and entertainment bundles.

Aussie Broadband’s half-year earnings results for the six months through to 31 December were strong. Highlights included a revenue leap of 46% year on year alongside a 45% increase in total broadband services.

The Aussie Broadband share price has surged by around 17% so far in 2022, giving it a market capitalisation of $1.33 billion. The company is a relative newcomer to the ASX, having listed on 16 October 2020.

Motley Fool contributor Bernd Struben does not own shares of Aussie Broadband Ltd.

Brooke Cooper: Telstra Corporation Ltd (ASX: TLS)

The Telstra share price hasn’t had the best start to 2022. It’s flopped 3.35% year to date and closed Friday’s session at $4.04.

But, according to Telstra, the company is in for brighter days ahead, and some brokers agree.

The S&P/ASX 200 Index (ASX: XJO) telco has finally pushed past the challenging NBN rollout. It’s also gearing up to kickstart its T25 strategy – which follows on from what Andy Penn called the company’s “ambitious” and “transformational” T22 strategy.

One of T25’s aims is to further support dividends through a number of cost-cutting and value-adding initiatives.

Brokers Credit Suisse, Morgans, Ord Minnett, and Morgan Stanley are all tipping the Telstra share price to reach at least $4.50 in the next 12 months.

Motley Fool contributor Brooke Cooper does not own shares of Telstra Corporation Ltd.

Sebastian Bowen: BetaShares Global Banks ETF (ASX: BNKS)

Inflation has now become a significant concern for many investors. That’s why this ASX exchange-traded fund (ETF) could be worth looking at in May.

Bank shares are often touted as inflation resistant. This is largely thanks to their ability to rapidly change the interest rates they charge and receive for their services.

This ETF from provider BetaSahres holds a collection (59 at the last count) of the world’s largest bank shares. These come from countries such as the United States, Canada, Britain, China, Japan, and others.

In a world of rising inflation, BNKS could be a worthwhile portfolio addition. This ETF also pays a meaty dividend distribution which, on Friday’s closing price of $6.33, was worth a yield of around 4%.

Motley Fool contributor Sebastian Bowen does not own the BetaShares Global Banks ETF.

James Mickleboro: Goodman Group (ASX: GMG)

Goodman Group could be a top option for investors to consider in May. It is one of the world’s leading integrated commercial and industrial property companies, with a portfolio of high-quality properties across the globe. These properties have exposure to growth markets such as e-commerce and logistics and are, unsurprisingly, in high demand. This has underpinned a sky-high occupancy rate and growing rental income for the company.

Pleasingly, with a material development pipeline and demand unabating, Goodman has been tipped to continue its strong growth in the coming years. For example, analysts at Citi now “forecast c. 23% EPS growth in FY22 and c. 19% EPS CAGR from FY21-FY24.”

The broker also sees value in the Goodman share price with its buy rating and price target of $29.50. Goodman shares closed Friday’s session 2.09% higher at $23.98.

Motley Fool contributor James Mickleboro does not own shares of Goodman Group.

The post Best ASX shares to buy in May 2022 appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX dividend shares with great yields to buy now
• What’s dragging the Telstra share price lower today?
• 5 ASX ETFs to combat inflation: fund manager
• Shoes, shopping, reno: 3 ASX shares experts are buying now
• Which ASX 200 shares have historically performed well during rising inflation?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited and BetaShares Global Banks ETF – Currency Hedged. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/fhKpjI7

Have you got room for a blue chip or two in your portfolio? If you have, then take a look at the blockbuster blue chip shares listed below.

Here’s why they are highly rated:

CSL Limited (ASX: CSL)

The first blue chip ASX 200 share for investors to look at is CSL. It is one of the world’s leading biotechnology companies, comprising the CSL Behring and Seqirus businesses. It is also looking to add to its portfolio with the acquisition of Vifor Pharma.

This will build on its leadership position in plasma therapies and vaccines by adding treatments for iron deficiency, dialysis, and nephrology.

CSL’s shares have been underperforming over the last couple of years. This has been driven by plasma collection headwinds. However, these headwinds are beginning to ease and collections are becoming easier again.

In light of this, the team at Citi believe now could be a good time to invest. It recently reaffirmed its buy rating and $335 price target. This compares favourably to the latest CSL share price of $273.30.

REA Group Limited (ASX: REA)

Another ASX 200 blue chip share for investors to look at is REA Group. It is the dominant player in real estate listings in the Australian market.

REA has been tipped to continue its growth in the coming years. This is due to the strength of the housing market, new revenue streams, cost cutting, price increases, its international operations, and acquisitions. The latter has seen REA grow its presence in mortgage broking through the acquisition of Mortgage Choice.

Goldman Sachs is very positive on the company and has a buy rating and $170.00 price target on its shares. This compares to the latest REA share price of $129.42.

The post 2 highly rated blue chip ASX 200 shares brokers rate as buys appeared first on The Motley Fool Australia.

More reading

• 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?
• Analysts name 2 of the best blue chip ASX 200 shares to buy now
• 2 ASX 200 shares Goldman Sachs rates as buy

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

from The Motley Fool Australia https://ift.tt/zTiDnwN

If you’re looking for investment options, then the two beaten down shares listed below could be worth considering.

Here’s what analysts are saying about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator’s shares are down 38% since the start of the year. This has been driven by a softer than expected performance in Japan and concerns over inflationary pressures.

While this is disappointing, the team at Morgans appear to believe it has created a buying opportunity for investors. The broker recently retained its add rating and put a $100 price target on its shares.

Based on the current Domino’s share price of $75.31, this implies potential upside of approximately 33%.

Morgans commented: “We upgraded to ADD after the result and, although inflationary pressures have worsened since then, we continue to believe there is meaningful upside to the current share price over the next 12 months.”

Life360 Inc (ASX: 360)

Another ASX share that has been beaten down is Life360. It is the company behind the hugely popular Life360 app, which is the world’s leading real time, location-sharing app used by families across the world to stay safe and communicate.

This week the company revealed that it now has 38.2 million global monthly active users, which was up 36% year on year. From these users, Life360 generated a 73% increase in annualised monthly revenue to US$166.1 million.

However, softer cash flows and news that it has cancelled its US listing plans weighed on the LIfe360 share price, which is now down 58% since the start of the year.

Bell Potter remains positive on the company and has retained its buy rating with a $8.25 price target. This implies over 100% upside for investors.

The broker said: “[An] 18% decrease in the PT to $8.25 which is >100% premium to the share price so we maintain our BUY recommendation. We believe the market reaction is unwarranted and likely driven by the poor operating cash flow in Q1 but we expect the cash flow to materially improve in Q2 and Q3 and then be positive in Q4.”

The post Why analysts say investors should buy these beaten down ASX shares appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• The Domino’s share price just hit a 52-week low. Is it time to tuck into some?
• Here’s why ASX 200 tech shares are having such a stellar end to the week
• Why Appen, Block, Life360, and Northern Star shares are dropping
• ASX 200 midday update: Coronado has record quarter, Life360 and Northern Star sink

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/iYJCy8w

The S&P/ASX 200 Index (ASX: XJO) fought hard late in the week but was unable to recover from a selloff on Tuesday. The benchmark index fell 0.5% over the period to 7,435 points.

While a good number of shares tumbled with the market, some fell more than most. Here’s why these were the worst performers on the ASX 200 last week:

EML Payments Ltd (ASX: EML)

The EML Payments share price was the worst performer on the ASX 200 with a massive 40% decline. Investors were selling the payments company’s shares following the release of a surprisingly bad trading update.  EML has downgraded its earnings guidance following a tough third quarter which saw EML report a 22% decline in underlying net profit after tax and amortisation.

Life360 Inc (ASX: 360)

The Life360 share price wasn’t too far behind with a decline of 24.5% over the four days. Investors were selling the location technology company’s shares despite its quarterly update revealing a 129% increase in revenue to US$52.7 million and a 73% jump in annualised monthly revenue to US$166.1 million. The weakness appears to have been driven by weaker than expected cash flows and news that the company is scrapping its US dual listing plans. This appears to have sparked fears that a capital raising will be soon required.

Silver Lake Resources Limited (ASX: SLR)

The Silver Lake share price was out of form and sank 12.3% during the week. The catalyst for this decline was the release of the gold miner’s quarterly update. Silver Lake reported production of 53,822 ounces of gold. And while this left it positioned to meet its FY 2022 production guidance, management warned that COVID-19 related labour shortages could disrupt its operations and thus withdrew its guidance.

ResMed Inc (ASX: RMD)

The ResMed share price was a poor performer and tumbled 9.9% last week. The majority of this decline came on Friday following the release of the sleep treatment company’s quarterly update. ResMed posted a 12% increase in revenue to US$864.5 million and a 2% lift in earnings per share to US$1.32. Goldman Sachs points out that this missed consensus estimates by 5% and 9%, respectively.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Why Kogan, Reliance, ResMed, and Sandfire shares are dropping
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why are ASX 200 travel shares having a first-class end to the week?

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments and Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/VlpdFks

Are you looking for some dividend options for your portfolio? If you are, check out the two ASX 200 dividend shares listed below.

Here’s why they have been tipped to as buys:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share for investors to consider is this retail giant.

Coles is of course one of the big two supermarket operators with over 800 stores (and growing). It also operates over 900 liquor retail stores and over 700 Coles express stores.

The company is currently in the process of building smart distribution centres to support this network and boost its margins. Together with its track record of same store sales growth, this has many analysts forecasting solid earnings and dividend growth over the 2020s.

Citi is very positive on Coles. This week the broker responded to the company’s third quarter update by retaining its buy rating and $19.30 price target on its shares.

As for dividends, Citi has pencilled in fully franked dividends per share of 63 cents in FY 2022 and 72 cents in FY 2023. Based on the current Coles share price of $18.70, this will mean yields of 3.4% and 3.9%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share to look at is Coles’ former parent, Wesfarmers.

It is the conglomerate behind a high quality portfolio of retail assets as well as a collection of industrial businesses.

Morgans is a fan of the company and has an add rating and $58.50 price target on its shares. The broker highlights that Wesfarmers has a high quality portfolio, is run by a highly regarded management team, and has a strong balance sheet. The latter could be supportive of further M&A activity in the future.

In respect to dividends, Morgans is forecasting fully franked dividends per share of $1.62 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $49.41, this will mean yields of 3.3% and 3.7%, respectively.

The post Analysts name 2 ASX 200 dividend shares to buy next week appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• Coles share price in focus amid solid Q3 sales growth
• 5 things to watch on the ASX 200 on Thursday
• Green delivery milestone fails to electrify Coles share price
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in

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

from The Motley Fool Australia https://ift.tt/E2CXTxn