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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) continued its poor run and sank again. The benchmark index fell 0.8% to 7,261.2 points.

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

ASX 200 expected to rebound

The Australian share market looks set to rebound on Thursday following an improved night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.5% higher this morning. On Wall Street, the Dow Jones rose 0.2%, the S&P 500 climbed 0.2% and the Nasdaq traded flat.

Cochlear acquisition

The Cochlear Limited (ASX: COH) share price will be one to watch today. This follows news that the hearing solutions company is making an acquisition. Cochlear has agreed to pay A$170 million to acquire Oticon Medical. It currently has a base of more than 75,000 hearing implant recipients, which includes cochlear and acoustic implants. While Oticon Medical is expected to add A$75 million to $80 million to annual revenue, the business is currently loss making.

Oil prices push higher

It could be a decent day for energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices traded higher. According to Bloomberg, the WTI crude oil price is up 0.35% to US$102.06 a barrel and the Brent crude oil price is up to US$105.28 a barrel. This follows data out of the US which revealed that inventories remain tight.

Coles third quarter update

The Coles Group Ltd (ASX: COL) share price could be on the move today when the supermarket giant releases its third quarter update. According to a note out of Goldman Sachs, its analysts expect third quarter sales of $8.7 billion. This will be a 2.4% year on year increase and driven by comparable sales growth of 3.5% in the supermarkets division to $8 billion and 2% comparable sales growth in the liquor division.

Gold price tumbles

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor day after the gold price dropped to a two-month low overnight. According to CNBC, the spot gold price is down 0.95% to a two US$1,885.80 an ounce. A strong US dollar weighed on the precious metal.

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

More reading

• Here are the top 10 ASX shares today
• These ASX 200 shares are up more than 10% in the last month
• Green delivery milestone fails to electrify Coles share price
• How might the election outcome impact the outlook for ASX energy shares?
• ASX 200 shares trim losses despite surging inflation news

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 Cochlear Ltd. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re looking for dividend shares to buy to combat inflation then you may want to look at the ones below that brokers are recommending.

Here’s what the brokers are saying about these ASX dividend shares:

Adairs Ltd (ASX: ADH)

The first ASX dividend share that could be a top option is Adairs.

It the leading furniture and homewares retailer behind the Focus on Furniture, Mocka, and eponymous Adairs brands.

While the company has been underperforming in FY 2022 due to COVID headwinds, it has been tipped to bounce back strongly by analysts at Morgans. In light of this, the broker believes the market is undervaluing its shares and has put an add rating and $3.50 price target on its shares.

Morgans recently commented: “In FY23, we expect Focus to have bedded down and to have started a strategy of improving store economics while expanding its footprint. We expect the NDC [national distribution centre] to be up and running and delivering efficiencies. We expect Mocka to be making its first steps towards an omni-channel strategy. These factors underpin an expectation of positive earnings growth in FY23 and FY24, which we do not think are reflected in the multiple. ADD.”

As for dividends, the broker is forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023. Based on the current Adairs share price of $2.79, this will mean yields of 6.8% and 9.3%, respectively, over the next couple of years.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share for investors to look at is banking giant NAB.

It could be a top option for investors that are looking to gain exposure to the banking sector. Particularly given its strong position in business banking, the recent acquisition of digital bank 86 400, and the proposed acquisition of Citigroup’s Australian consumer business.

The team at Bell Potter expect the aforementioned acquisitions to allow the bank to “achieve scale in digital and consumer banking offerings.” It is partly for this reason that the broker has a buy rating and $34.50 price target on the bank’s shares at present.

In addition, the broker is forecasting fully franked dividends per share of 136.5 cents in FY 2022 and then 134.5 cents in FY 2023. Based on the current NAB share price of $32.20, this equates to yields of 4.2% and 4.1%, respectively.

The post 2 inflation-busting ASX dividend shares that brokers are tipping as buys appeared first on The Motley Fool Australia.

More reading

• Is the Westpac share price expensive in April?
• Here’s what the 5 biggest companies on the ASX 200 today were worth in 2000
• 2 cheap ASX shares to buy in May: Experts
• Why is the NAB share price beating the other ASX 200 banks in April?
• Beat inflation with these ASX dividend shares that analysts rate as buys

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. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Flight Centre Travel Group (ASX: FLT) share price has been struggling over the past three trading days.

Flight Centre shares have fallen 4.2% since the market close on Thursday 21 April to $21.72. In today’s trade, the Flight Centre share price slid 0.05%. For perspective, the S&P/ASX 200 Index (ASX: XJO) dropped 0.78%.

In recent days, Flight Centre has shared insights into the impact of COVID-19 on the company’s financial performance. Let’s take a look at what Flight Centre had to say.

‘Significant impact’

COVID-19 may “continue to adversely” affect Flight Centre for the foreseeable future, the airline noted in a prospectus for the issue of unsecured notes signed off by CEO Graham Turner on Friday.

Commenting on the ‘financial risk’, the report stated:

The COVID-19 pandemic has resulted in a significant short term impact and is expected to have a very significant medium to long term impact on the issuer’s business and operations and in particular, the demand for its services, which has reduced visibility on future earnings and cash flows, and has led to a material decline in revenues.

Flight Centre noted the high number of cancellations places “significant strain” on the company’s cash flows. Events cited in the report that could impact the tourism industry included wars, nuclear threats, terrorist attacks, floods, earthquakes, COVID-19, SARS, or any other disease.

However, today, Flight Centre presented a much more positive outlook in a Morgans roundtable presentation.

Flight Centre said it is “on the path to recovery”. Customers have been queuing outside Flight Centre shops since COVID-19 restrictions were lifted.

Flight Centre added that visits to friends and relatives are underpinning the international travel rebound. The company added: “Consultant productivity currently well above historic levels – looking to immediately recruit 500 leisure travel advisors globally to meet current and future demand.”

Flight Centre continues to be among the most shorted ASX shares, as my Foolish colleague James noted yesterday. The consensus broker position on Flight Centre is hold, according to a report on nabtrade.

Flight Centre share price snapshot

The Flight Centre share price has soared by 26% over the past year. It has ascended 16% this year to date. For perspective, the benchmark index has returned nearly 4% over the past year. In the past month, Flight Centre shares have jumped by more than 13%.

The company has a market capitalisation of about $4.34 billion.

The post How long will the Flight Centre share price keep getting battered by COVID-19? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• How do you value the Flight Centre share price in April 2022?
• The Flight Centre share price just surged to a 6-month high. Here’s why
• Why are ASX 200 travel shares taking off on Wednesday?
• Here are the 5 best performing ASX travel shares of 2022 so far

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 Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Now that we are getting towards the business end of April, it might be a good chance to take stock and check out the Westpac Banking Corp (ASX: WBC) share price.

As a big four ASX 200 bank, Westpac is one of the largest and most widely-held ASX shares on the market.

So as it currently stands, Westpac shares closed on Wednesday trading at $23.45 each, down a nasty 1.88% for the day. This places the Westpac share price 8.26% higher so far in 2022, a significant outperformance of the S&P/ASX 200 Index (ASX: XJO).

But over the past 12 months, Westpac’s performance hasn’t been quite as impressive. Since April 2021, Westpac shares have lost 7.31% of their value. The bank is still well in the red over the past five years, too, having gone backwards by a significant 33% or so over this period.

So that might lead some investors to wonder if the Westpac share price is cheap or expensive right now.

Are Westpac shares cheap compared to the other ASX 200 banks?

Well, let’s see how this ASX 200 bank is being priced compared to its peers. The price-to-earnings (P/E) ratio is a useful metric to employ when comparing the valuations of mature companies in the same sector.

Right now, Westpac shares have a P/E ratio of 17.57, meaning that investors are willing to pay $17.57 for every $1 of earnings the bank brings in. This tells us that, on a raw dollar-to-dollar earnings comparison, investors are valuing Westpac shares at a higher price than Australia and New Zealand Banking Group Ltd (ASX: ANZ). ANZ shares currently trade with a P/E ratio of 13.53.

However, investors are giving Westpac shares an almost identical premium to fellow bank National Australia Bank Ltd (ASX: NAB). NAB currently has a P/E ratio of 17.61, just a tad higher than Westpac’s own.

But Westpac can’t shine a light on Commonwealth Bank of Australia (ASX: CBA) shares. CBA commands a clear premium for ASX bank investors. In CBA’s case, investors are willing to pay $19.80 for every $1 of CBA’s earnings.

So right now, Westpac shares are cheaper than CBA and NAB on a P/E ratio basis but more expensive than ANZ.

The post Is the Westpac share price expensive in April? appeared first on The Motley Fool Australia.

More reading

• Here’s what the 5 biggest companies on the ASX 200 today were worth in 2000
• Own CBA shares? Meet the big bank’s new chair
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
• Why is the NAB share price beating the other ASX 200 banks in April?
• Own ANZ shares? Here’s what this top broker finds ‘particularly concerning’

Motley Fool contributor Sebastian Bowen owns National Australia Bank 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Inflation is now the word of the day. Today, Australian CPI was printed at 5.1% for the three months until 31 March 2022.

It doesn’t appear the market has taken the news very well. The benchmark S&P/ASX 200 Index (ASX: XJO) is down 63 basis points at the time of writing.

As commodity markets continue to boom and food prices look set for a green period, market pundits are positioning to avoid the fallout of rising inflation.

What shares do well in inflationary periods?

Inflation can be a real pain to investors. Especially at the retail end because it has a direct impact on investment returns.

Returns are measured in nominal and real terms, with the latter accounting to adjust for inflation. Put simply, inflation eats into real savings and investment gains by reducing purchasing power.

“Inflation poses a threat to investors because it chips away at real savings and investment returns,” according to analysis from fixed-income giant Pimco.

Most investors aim to increase their long-term purchasing power. Inflation puts this goal at risk because investment returns must first keep up with the rate of inflation in order to increase real purchasing power.

For example, an investment that returns 2 per cent before inflation in an environment of 3 per cent inflation will produce a negative return (-1 per cent) when adjusted for inflation.

Going to the archives, research analysts at JP Morgan have uncovered some interesting findings.

Curiously, investigations by the broker reveal that materials, industrials and financials sectors each demonstrate strength when consumer expectations of inflation rise. Whilst more growth-type assets flounder.

“Cyclical sectors such as financials, industrials, materials and energy, tend to outperform the global benchmark in periods of rising inflation expectations,” the broker wrote.

By contrast, defensives and growth stocks tend to struggle. Technology is the sector that looks most vulnerable today, given their valuations have likely benefitted from the low interest rates and flat yield curves over the past couple of years.

Pimco suggests the same, noting that “[m]any commodity-based assets, such as commodity indexes, can help cushion a portfolio against inflation because their total returns usually rise in an inflationary environment.”

What instruments are out there?

Along those lines, the BetaShares Global Energy Companies ETF (ASX: FUEL) offers investors diversified exposure to the energy sector. Meanwhile, the BetaShares Global Banks ETF (ASX: BNKS) lends the same, albeit in financials.

For global ‘inflation-protected’ exposure, the Fidelity Stocks for Inflation ETF (BATS: FCPI) might pique investor interest. It’s an index fund that tracks the Fidelity Stocks for Inflation Factor Index.

According to S&P Global:

[The] Fidelity Stocks for Inflation Factor Index is designed to reflect the performance of stocks of large- and mid-capitalization U.S. companies with attractive valuations, high quality profiles, and positive momentum signals, with structural tilts to sectors that tend to outperform in inflationary environments.

Some of the top holdings include Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Marathon Oil Corporation (NYSE: MRO).

As the investment landscape keeps evolving, it appears these baskets are poised to perform amid the inflationary pressures. But only time will tell.

The post Which ASX 200 shares have historically performed well during rising inflation? appeared first on The Motley Fool Australia.

More reading

• Why Apple stock could crush the market this earnings season
• Have ASX tech shares finally reached the bottom?
• The world’s most valuable companies from 2000 to 2022
• 3 high quality ETFs for ASX investors to buy today
• Looking for dividend shares outside mining and banking? Read this

Motley Fool contributor Zach Bristow owns Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple, BetaShares Global Banks ETF – Currency Hedged, BetaShares Global Energy Companies ETF – Currency Hedged, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Today, the S&P/ASX 200 Index (ASX: XJO) deepened its retracement from its recent near all-time highs amid red hot inflation numbers. At the end of the session, the benchmark index finished 0.78% lower at 7,261.2 points.

In a similar cascading dance that unfolded on Wall Street last night, the Australian share market suffered a brutish blow. Taking a first-class seat to the downside today were tech shares and consumer stables. Fortunately, shares across the energy and real estate sectors provided some stability to the benchmark index.

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, Whitehaven Coal Ltd (ASX: WHC) was the biggest gainer today. Shares in the coal producer jumped 5.46% despite the company lacking any announcements. Although, a few broker notes portraying a sense of confidence in the coal miner could partially be behind the enthusiasm. Find out more about Whitehaven Coal here.

Finding the second-best spot on the list today was Downer EDI Ltd (ASX: DOW). It appears the integrated services company unlocked some excitement for its shares after posting its investor day presentation this morning. Uncover the latest Downer EDI details here.

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

ASX-listed company	Share price	Price change
Whitehaven Coal Ltd (ASX: WHC)	$4.64	5.46%
Downer EDI Ltd (ASX: DOW)	$5.33	4.72%
Champion Iron Ltd (ASX: CIA)	$7.02	3.39%
Coronado Global Resources Inc (ASX: CRN)	$2.21	3.27%
Nib Holdings Ltd (ASX: NHF)	$6.99	3.25%
South32 Ltd (ASX: S32)	$4.60	3.14%
Infratil Ltd (ASX: IFT)	$7.77	2.64%
Shopping Centres Australasia Property Group (ASX: SCP)	$3.12	2.30%
Centuria Capital Group (ASX: CNI)	$2.76	2.22%
Sims Ltd (ASX: SGM)	$20.62	2.03%

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

• These ASX 200 shares are up more than 10% in the last month
• How might the election outcome impact the outlook for ASX energy shares?
• ASX 200 shares trim losses despite surging inflation news
• Why is the Whitehaven share price accelerating 6% today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Shopping Centres Australasia Property Group. The Motley Fool Australia has recommended NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Zip Co Ltd (ASX: ZIP) share price suffered once more on Wednesday, tumbling to its lowest point since 2018.

The fall came after short sellers upped their siege on the stock. But one broker is still hopeful the buy now, pay later (BNPL) giant could stage a comeback.

As of Wednesday’s close, the Zip share price is $1.015, 5.14% lower than it was at the end of Tuesday’s session.

But that’s an improvement on its early trade. The BNPL stock slumped to trade at $1 in intraday trade on Wednesday.

At least it wasn’t alone in its suffering. As of the end of trade, the All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) were down 0.75% and 0.78% respectively.

Let’s take a look at what might have weighed on Zip’s stock today and what its future could bring.

Zip share price hits disappointing milestone

Well, it’s finally happened, folks. The Zip share price has hit $1.

The solemn milestone comes only 14 months after the stock reached its all-time high of $14.53. That means the Zip share price has tumbled a whopping 92% between then and now.

And if investors once thought the new year could see the stock turn around, they’ve been bitterly disappointed. Since the start of 2022, it has fallen 76% from $4.33.

Today’s plunge was likely due to the tech sector’s movements.

While Zip is technically at home on the S&P/ASX 200 Financials Index (ASX: XFJ), it more often follows the S&P/ASX 200 Information Technology Index (ASX: XIJ).

The information technology sector plunged 2.43% on Wednesday, likely helped along by the Nasdaq Composite’s 3.95% tumble overnight.

But could the future be brighter for the Zip share price? Well, that depends on who you ask.

Short sellers seem to think not. As The Motley Fool Australia’s James Mickleboro recently reported, Zip’s short position increased last week, reaching 9.2%. That means more market participants are betting the stock will drop.

Additionally, UBS slapped Zip with a $1 price target and a ‘sell’ rating back in March.

It’s a similar story out of Jefferies, while Macquarie and Morgans are slightly more bullish, giving targets of $1.05 and $1.26 respectively, Mickleboro reported earlier this week.

On the other hand, Citi has a $2.15 price target and a ‘neutral’ rating on Zip shares, as my colleague Sebastian Bowen reported yesterday.

The post Zip share price slides another 5% to new multi-year low of $1 appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Is the Zip share price set to sink below the $1 mark for the first time since 2018?
• Have ASX tech shares finally reached the bottom?
• Is the Zip share price weakness a buying opportunity?
• Top brokers name 3 ASX shares to sell next week

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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. owns and has recommended ZIPCOLTD FPO. 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 Bruce Jackson.

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It has been on a bumpy ride for ASX 200 shares in the last month, with heightened uncertainty plaguing markets around the world.

However, there are still several ASX-listed companies that have been able to deliver big wins over this period. In fact, these ASX 200 shares have managed to outperform the S&P/ASX 200 Index (ASX: XJO) by more than 10%.

So, what is behind these stellar performances? Let’s take a look.

Doing better than the benchmark

Although the past is not always indicative of future performance, it can give us some clues as to which ASX 200 shares have been able to shine in a month where the benchmark index has struggled.

In the last month, the ASX 200 has fallen around 2%. Meanwhile, a number of ASX-listed companies managed to buck this trend. In fact, 10 constituents in the benchmark index delivered in a month what the overall index returns on average over a whole year.

ASX-listed company	Price change (1 month)
Ramsay Health Care Ltd (ASX: RHC)	30.6%
Viva Energy Group Ltd (ASX: VEA)	17.3%
GrainCorp Ltd (ASX: GNC)	16.2%
Pendal Group Ltd (ASX: PDL)	15.3%
GUD Holdings Ltd (ASX: GUD)	12.8%
Mineral Resources Ltd (ASX: MIN)	12.3%
Flight Centre Travel Group Ltd (ASX: FLT)	12.0%
Nufarm Ltd (ASX: NUF)	11.0%
AGL Energy Ltd (ASX: AGL)	10.9%
APA Group (ASX: APA)	10.3%

At the top of the leaderboard as the biggest gainer in the past 30 days is Ramsay Health Care.

At a market capitalisation of $18.66 billion, it is a strange sight to see such dramatic moves in a relatively stable business, such as the private hospital operator.

However, it was no every-day announcement that moved this blue-chip. Instead, a takeover bid from a consortium of investors led by KKR acted as the rocket fuel for this outperformance. Likewise, Pendal enjoyed a solid month after the fund manager received a takeover bid of its own.

On the other hand, ASX 200 shares such as Viva Energy, APA Group, GrainCorp, and Mineral Resources have benefited from sustained strength across commodities and energy.

Inflation flies in front of ASX 200 shares

Looking ahead, the main headwind that investors are keeping an eye on is interest rate rises. While the correlation is arguable, there is a sense that share prices tend to lose steam amid a rising rate environment.

Today, it was revealed that the underlying inflation rate increased to 3.7%. Following this, many economists have renewed their call for the Reserve Bank of Australia to lift rates in May. In turn, investors are wary of how this could impact ASX 200 shares and the broader market.

The post These ASX 200 shares are up more than 10% in the last month appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• ASX 200 shares trim losses despite surging inflation news
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the EML share price tumbling again today?
• ASX 200 midday update: Coronado has record quarter, Life360 and Northern Star sink

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended APA Group. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In periods of elevated volatility and market declines, investors may get the chance to buy ASX growth shares that are much cheaper than they were before.

Sometimes a decline can be triggered by external events, such as the prospect of rising interest rates or the recent-ish onset of the COVID-19 global pandemic.

With that in mind, these are two ASX growth shares that are rated as buys:

Bubs Australia Ltd (ASX: BUB)

Bubs claims to be Australia’s number one goat infant formula brand, with a 43.2% market share of the domestic goat segment.

It has also reached a 4.2% market share of the total infant formula market in Australia, with 40% scan sales growth in the third quarter of FY22 for the three months to 31 March 2022. Scan sales refer to the combined sales at Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW), and Chemist Warehouse.

Not only is the company growing sales rapidly domestically, but sales are also increasing internationally. In the FY22 third quarter, international (excluding China) sales represented 32% of total quarterly sales. Quarterly international sales jumped 153% with Bubs-branded product international sales rising 63%.

Quarterly Chinese sales were up 8%, representing 40% of the company’s quarterly sales. Daigou sales were up 11% year on year, while cross-border e-commerce sales rose 2%.

The company is working on growing its distribution footprint in the USA. In the quarter, its ranging expanded to 254 Smart & Final stores as well as 130 Buy Buy Baby stores.

The ASX growth share is also increasing its partnership with corporate daigou business Willis Trading. This includes a large purchase order for Bubs’ new product called Bubs Supreme.

Bubs is rated as a buy by the broker Citi, with a price target of $0.59. However, it was expecting more revenue growth in the FY22 third quarter. The Bubs share price has fallen more than 10% this week.

The company warned COVID-19 could cause more disruptions in the shorter term.

Adore Beauty Group Ltd (ASX: ABY)

The Adore Beauty share price has fallen by around 60% in the 2022 calendar year to date.

Like plenty of other ASX growth shares, the beauty e-commerce business has seen a decline amid rampant global inflation and expectations of rising interest rates.

However, the company has continued to deliver operational growth. That’s one of the things that attracts UBS to the business. The broker rates Adore Beauty as a buy, with a price target of $4.70. UBS thinks that Adore Beauty can keep growing revenue in the coming years.

In its FY22 half-year result, Adore Beauty said that its revenue rose 18% to $113.1 million, with annual revenue per active customer rising by 5% year on year to $224. That was thanks to higher average order values and an increasing proportion of returning customers.

The company boasts of industry-leading customer satisfaction scores while executing “strongly” on longer-term strategic priorities. It’s growing its loyalty program with “continued strong member sign-ups”. The company is also expanding its owned-marketing channels which means it doesn’t need to spend as much to reach potential customers with its marketing.

The ASX growth share is working on initiatives that can help its underlying profit margins. It’s planning to launch its first private label skincare brand in the fourth quarter of FY22. The gross profit margin improved by 0.6 percentage points to 33.1% in HY22.

In the first six weeks of the second half of FY22, its revenue increased another 14%. Management says the business is benefiting from a structural shift to online. It says “customer growth, high levels of retention, and growing brand awareness, strongly positions the company for future growth”.

The post 2 great ASX growth shares to buy in May 2022: experts appeared first on The Motley Fool Australia.

More reading

• Analysts name 3 small cap ASX shares to buy
• Bubs share price sinks 7% despite quarter of ‘exceptional growth’
• 2 buy-rated ASX growth shares that analysts say can double
• 3 factors that could make the Adore Beauty share price too good to miss
• Why is the Adore Beauty share price tumbling 9% to an all-time low?

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 recommended Adore Beauty Group Limited. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Adore Beauty Group Limited and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re interested in adding some growth shares to your portfolio in May, then the two listed below could be worth considering.

These ASX growth shares have been named as buys and tipped to generate strong returns for investors in the future. Here’s what you need to know about them:

Aristocrat Leisure Limited (ASX: ALL)

The first growth share for investors to look at is Aristocrat. It is a gaming technology company with a portfolio of world class pokie machines and digital games. The latter includes Raid: Shadow Legends, Heart of Vegas, Mech Arena, and Vikings: War of Clans, which are generating significant recurring revenues from their millions of daily active users.

The team at Citi is very positive on Aristocrat and believes it is well-placed for growth in the future.

Citi commented: “Aristocrat represents a compelling long-term growth story, with exposure to ongoing growth in mobile game penetration and potential to grow into new markets.”

The broker currently has a buy rating and $44.00 price target on the company’s shares. Based on the current Aristocrat share price of $31.95, this implies potential upside of 38% for investors over the next 12 months.

NextDC Ltd (ASX: NXT)

Another ASX growth share to look at is NextDC. It is a leading data centre operator with a collection of world class centres across key locations throughout Australia. It is also looking to the Asia market and regional Australia for expansion opportunities.

NextDC has been tipped to continue its solid growth in the future thanks to increasing demand for data centre capacity due to the structural shift to the cloud.

Morgans recently commented: “NXT remains our preferred pick given substantial structural growth, quality management, significant barrier to entry and, in our view, improving competitive advantage with regional/edge sites. We see a clear pathway for long-term growth, substantially higher EBITDA and material free cash flow, over the medium term.”

The broker has an add rating and $14.64 price target on its shares. Based on the current NextDC share price of $10.85, this suggests potential upside of 35% for investors.

The post Analysts name 2 ASX growth shares to buy with 30%+ upside appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX growth shares to buy with ~30% upside potential
• 3 ASX 200 shares sliding to 52-week lows on Tuesday
• Top brokers name 3 ASX shares to buy next week
• Jackpot! Citi tips Aristocrat share price to surge 30% higher
• 2 ASX tech shares that are cheap enough to buy now

Motley Fool contributor James Mickleboro owns NEXTDC 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 Bruce Jackson.

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