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It was another tough week for the Zip Co Ltd (ASX: ZIP) share price.

Investors were selling down the buy now pay later provider’s shares following the release of its third quarter update.

While that update revealed growth that most companies would be proud of, it still fell short of the market’s expectations.

This was compounded by the worsening of credit losses and concerns over lower frequency of use and the impact that its bold cost reduction plans could have on its growth.

The Zip share price ultimately ended the week 10% lower than where it started it at a lowly $1.10. This means its shares are now down almost 75% since the start of the year.

Is the weakness in the Zip share price a buying opportunity?

According to a note out of Citi at the end of last week, its analysts continue to sit on the fence with the Zip share price.

Although the broker acknowledges that Zip is pulling the right levers, it highlights that risks remain.

In light of this, the broker has put a neutral (high risk) rating and $2.15 price target on the company’s shares.

Citi commented: “While TTV growth was slower than expected and bad debts in AU increased qoq, on balance we see the 3Q update as positive with customer growth in the US accelerating in spite of tightening of risk settings, net transaction margins improving and Zip reducing costs faster than expected. “

“While stronger-than-expected growth on the back of Enterprise merchant additions represents upside potential, we are Neutral/High Risk (2H) rated as we are concerned about the potential for bad debts to remain elevated and the impact to top line growth from cost reduction measures.”

The post Is the Zip share price weakness a buying opportunity? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Why BHP, Megaport, OZ Minerals, and Zip shares are dropping
• Zip share price hits new multi-year low after brokers turn even more bearish
• Zip share price higher at last: Here are key takeaways from the Q3 update
• Zip share price edges higher amid third quarter 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 Bruce Jackson.

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If you’re wanting to add some ASX 200 dividend shares to your portfolio, then it could be worth considering the two listed below.

Here’s why analysts think they could be top options for income investors:

South32 Ltd (ASX: S32)

The first ASX 200 dividend share to look at is South32. It is diversified mining and metals company producing a range of commodities including alumina, aluminium, bauxite, coal, copper, manganese, nickel, and silver across operations in Australia, Southern Africa and South America.

Goldman Sachs is a big fan of the company. It currently has a conviction buy rating and $5.80 price target on the miner’s shares.

The broker commented: “We are Buy rated on S32.AX (on CL) with strong FCF [free cash flow] (17% base case for FY23), exposure to base metals (75% EBITDA; aluminium & alumina c. 50% of FY23 EBITDA, copper c.10 %, zinc/nickel c. 20%), and with 7%/3% Cu Eq production growth in FY22/FY23.”

It is because of that strong free cash flow that Goldman is forecasting fully franked dividend yields of 10% in FY 2022 and ~14% in FY 2023 and FY 2024.

Transurban Group (ASX: TCL)

Another ASX 200 dividend share to consider is toll road operator Transurban. The team at Morgans is positive on the company and currently has an add rating and $14.29 price target on its shares.

Morgans notes that Transurban’s performance has been improving, with traffic volumes recovering nicely from the pandemic. It expects this to underpin an equally quick recovery in its dividends.

It commented: “TCL owns a pure play portfolio of toll road concession assets located in Melbourne, Sydney, Brisbane, and North America. This provides exposure to regional population and employment growth and urbanisation. […] Watch for rapid recovery in DPS alongside traffic recovery and WestConnex acquisition prospects.”

Morgans is forecasting dividends per share of 37 cents in FY 2022 and then 60 cents in FY 2023. Based on the current Transurban share price of $13.99, this implies yields of 2.6% and 4.3%, respectively.

The post 2 ASX 200 dividend shares to buy according to brokers appeared first on The Motley Fool Australia.

More reading

• Is South32 an ASX dividend stock?
• Here are the 3 most traded ASX 200 shares on Friday
• Transurban shares are one of only a handful of ASX 200 stocks gaining today. What’s happening?
• Could this ASX 200 share be one of the best monopoly plays there is?
• Mining and tech: Experts name 2 ASX 200 shares to buy now

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 Bruce Jackson.

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If 2021 and 2022 thus far have had an investing theme, green metals would have to be up there as a prime candidate.

A decade ago, most investors might not have even heard of lithium. Now, there are more than a few investors out there that think the key ingredient in rechargeable batteries is primed to be the gold of the 21st century.

Of course, this enthusiasm for green metals doesn’t stop at lithium. Companies mining everything from vanadium to neodymium to cobalt have had a turn impressing investors over the past year or two. And graphite, and ASX graphite stocks, are no different.

Graphite is certainly getting some investors excited. As we covered earlier this week, one ASX analyst recently described graphite as “[looking] a lot more like lithium three to five years ago”.

So what is graphite exactly? And which ASX stocks are involved in graphite production?

Looking for ASX graphite stocks…

Well, graphite isn’t a metal, for starters. It’s actually a form of carbon, the very same element that makes up most of life on earth. Not to mention coal and diamonds. You might know graphite best as the ‘lead’ in a lead pencil.

But graphite has been in focus recently due to its applications in rechargeable batteries, particularly those used in electric vehicles. This is largely thanks to the material’s high electrical conductivity.

So which ASX stocks are involved in the graphite industry?

Well, perhaps the most prominent ASX graphite stock is Novonix Ltd (ASX: NVX). Novonix is a battery technology company that has been developing graphite for anodes for lithium-ion batteries. This company had a stellar stock price run last year, but has been brought back to earth over 2022 thus far. However, it is still up 141% over the past 12 months.

Syrah Resources Ltd (ASX: SYR) is another prominent ASX graphite stock. This miner reckons it has the “world’s largest natural graphite resource” in its Balama Project in Mozambique. The company was also recently granted a loan agreement with the US Department of Energy to expand its anode facility in the US state of Louisiana. The Syrah share price has gained 53% in a year.

Black Rock Mining Ltd (ASX: BKT) is a final ASX graphite stock to take a look at. It owns the Mahenge Project in Tanzania. This is another of the world’s largest natural graphite deposits. Black Rock shares have rocketed 114% over the past year.

So there are many options on the ASX to examine if one wants exposure to ASX graphite stocks and the graphite industry.

The post Why is everyone talking about graphite and which ASX stocks have exposure? appeared first on The Motley Fool Australia.

More reading

• This forgotten battery metal ‘looks like lithium 3 to 5 years ago’: analysts
• 3 ASX mining shares booming by 18% or more today
• ASX 200 midday update: AMP asset sale talks, Syrah rockets
• Syrah Resources share price booms 19% amid show of US support
• The Novonix share price fell a further 5% on Tuesday. What’s happening?

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

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Exchange traded funds (ETFs) continue to grow in popularity. And it isn’t hard to see why.

ETFs give investors easy access to a large and diverse number of different shares that they wouldn’t ordinarily have access to.

But with so many to choose from, it can be hard to decide which ones to buy over others. To narrow things down, listed below are two highly rated ETFs that you might want to explore. They are as follows:

Betashares Global Sustainability Leaders ETF (ASX: ETHI)

The first ETF for ASX investors to take a look at is the Betashares Global Sustainability Leaders ETF. This ETF gives investors exposure to large global stocks that have been identified as “Climate Leaders.”

BetaShares notes that the ETF combines positive climate leadership screens with a broad set of ESG criteria, offering investors a true-to-label ethical investment solution. Among the shares included in the fund are Adobe, Apple, Home Depot, Nvidia, Toyota, and Visa.

Shaw and Partners’ Felicity Thomas recently rated the ETF as a buy.

She told Livewire: “This is one of my favourites, so it’s definitely a buy for me. I really like that they do positive carbon screening. They also pay a 5.7% distribution yield, which is great.”

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for investors to look at next week is the Vanguard MSCI Index International Shares ETF.

It is one of the most popular ETFs on the Australian share market for a reason. The Vanguard MSCI Index International Shares ETF provides investors with exposure to over 1,500 of the world’s largest listed companies through just a single investment. That’s about as diversified as it gets.

Among the companies you’ll be owning a slice of with this ETF are giants such as Apple, Johnson & Johnson, Nestle, Procter & Gamble, and Visa.

The post Here are 2 top ETFs for ASX investors to buy next week appeared first on The Motley Fool Australia.

More reading

• What’s impacting the Vanguard MSCI Index International Shares ETF price in 2022?
• 3 high quality ETFs for ASX investors to buy today
• Is the Vanguard International Shares ETF just a big bet on the FANG stocks?
• How did the Vanguard MSCI Index International Shares ETF fare in March?
• Does the Vanguard MSCI Index International Shares ETF (ASX:VGS) pay dividends?

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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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Once upon a time, the Altium Limited (ASX: ALU) share price was well known for its exceptional performance. More recently, the PCB design software provider has lost its reputation for extreme share price rises. Instead, the tech company has begun to attract appeal with its steadily climbing dividends.

As we covered in our ‘dividend beasts’ article on Friday, substantial changes in the share price of a company can lead to fluctuations in the dividend yield. Given the Altium share price has been knocked down 27% in 2022, it might be time to review its yield.

Let’s find out what passive income investors can now expect from Altium.

Six of one, half a dozen of the other

Typically, a falling share price over a period of time will result in a marginally higher dividend yield. This is simply due to the way a dividend yield is calculated — which is, dividends for the trailing 12-months divided by the share price.

For example, in Altium’s case: 30 cents per share US (AU$0.41) ÷ $32.77 = 1.25%

However, a falling share price doesn’t automatically result in an increased dividend yield. Note that there are two variables in the equation, the other being the dividends per share (DPS). If the DPS were to fall in line with the share price, the result would be a relatively flat dividend yield.

For Altium, the share price has fallen significantly in combination with the DPS increasing since the beginning of the year. In turn, the dividend yield has been boosted from 1.1% to its current 1.25%.

Despite not really being known for its dividends, Altium has managed to notch up its payouts each year for the past 10 years. This has been in line with the board’s policy of paying out 50% to 80% of net profit after tax (NPAT).

Is the Altium share price worth the squeeze?

The once illustrious ‘WAAAX‘ constituent has seen better days, but the team at Bell Porter is still keen on Altium.

As covered by my colleague Sebastian, the broker foresees strong profit growth ahead for Altium. At the same time, the broker doesn’t believe the headwinds that have hounded the investment case for the company are dealbreakers.

The team currently holds a target of $41.25 for the Altium share price. This would suggest a potential upside of 26%.

The post The Altium share price has tumbled 27% in 2022, so what does this make the current dividend yield? appeared first on The Motley Fool Australia.

More reading

• Brokers name 2 ASX shares to buy after the tech selloff
• Here are 2 fantastic ASX growth shares analysts rate as buys
• Altium share price: Is it an ASX buy or a falling knife?
• 5 things to watch on the ASX 200 on Tuesday
• Why are ASX 200 tech shares having such a dire day?

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. owns and has recommended Altium. 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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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:

Challenger Ltd (ASX: CGF)

According to a note out of Citi, its analysts have downgraded this annuities company’s shares to a sell rating with a reduced price target of $6.90. Citi believes the market’s reaction to Challenger’s quarterly update was surprising. While it highlights that Challenger has upgraded its guidance range, it felt consensus estimates were already largely there. It also has concerns over the company’s maturities, which it notes were very high for a March quarter. The Challenger share price ended the week at $7.11.

Endeavour Group Ltd (ASX: EDV)

A note out of Credit Suisse reveals that its analysts have downgraded this alcohol retailer’s shares to an underperform rating and cut the price target on them to $6.60. The broker was disappointed with Endeavour’s trading update and highlights that the company is continuing to lose market share in the retail channel. In light of this, it feels its shares are expensive at the current level and sees better options for investors elsewhere. The Endeavour share price was fetching $7.74 at Friday’s close.

Zip Co Ltd (ASX: Z1P)

Analysts at Macquarie have retained their underperform rating and slashed their price target on this buy now pay later provider’s shares to $1.05. This follows the release of a quarterly update which revealed falling customer usage and slowing growth. The broker also warns that there are regulatory and funding cost risks that make Zip’s pathway to profitability very cloudy. The Zip share price was trading at $1.11 on Friday.

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

More reading

• Here are the top 10 ASX shares today
• Challenger share price slides as top broker calls Thursday’s gains ‘surprising’
• Brokers name 3 ASX shares to buy today
• Why Bellevue Gold, CSL, Endeavour, and Serko shares are pushing higher today
• Why BHP, Megaport, OZ Minerals, and Zip shares are dropping

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 ZIPCOLTD FPO. The Motley Fool Australia has recommended Challenger 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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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:

BHP Group Ltd (ASX: BHP)

According to a note out of Citi, its analysts have upgraded this mining giant’s shares to a buy rating with an improved price target of $56.00. While Citi acknowledges that BHP’s operational performance disappointed during the recent quarter, it feels investors should look beyond this due to the mountain of cash flow the Big Australian is generating. This is expected to underpin big dividends. The BHP share price ended the week at $48.49.

Santos Ltd (ASX: STO)

A note out of Morgans reveals that its analysts have retained their add rating and put a $10.10 price target on this energy producer’s shares. Its analysts believe that the company’s decision to launch a share buyback, despite its shares trading in or around multi-year highs, is a sign that management believes its shares are cheap. Outside this, the broker expects the resilience of its growth profile and diversified earnings base to help Santos outperform. The Santos share price was fetching $8.15 at Friday’s close.

Xero Limited (ASX: XRO)

Analysts at Goldman Sachs have reiterated their buy rating but trimmed their price target on this cloud accounting platform provider’s shares to $133.00. Following a recent period of underperformance, the broker believes this has created an attractive entry point into a compelling global growth story. Xero continues to be Goldman’s preferred large cap technology name in the ANZ region. The Xero share price ended the week at $97.84.

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

More reading

• Brokers name 3 ASX shares to buy today
• Why BHP, Megaport, OZ Minerals, and Zip shares are dropping
• Is this why the BHP share price is down 4% today?
• Dividend beasts: 5 ASX 200 shares with the highest dividend yield right now
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. 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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Do you remember when General Electric was the largest company in the world? It really wasn’t terribly long ago. The industrial giant wrested the market-cap crown away from software titan Microsoft when the dot-com bubble popped.

GE held on to the title with an iron fist for nearly two years:

GE MARKET CAP DATA BY YCHARTS.

Exxon takes over

By the summer of 2002, Microsoft had recuperated while oil producer ExxonMobil rose through the ranks. The top spot shifted between these three companies over the next four years, and then Exxon controlled the crown between 2006 and 2011:

GE MARKET CAP DATA BY YCHARTS.

At this point, Apple had turned its iPhone and iPad product lines into a world-class cash machine. Apart from a brief skirmish with Exxon in 2013, Cupertino monopolized the market cap throne for seven years:

GE MARKET CAP DATA BY YCHARTS.

What’s new?

And now we’re in the modern era. Apple is still the monarch of the market cap, but the title always seems to be within reach of Microsoft and e-commerce veteran Amazon. Online services expert and Google parent Alphabet has also joined the fray every now and then, but never quite managed to reach the top spot:

GE MARKET CAP DATA BY YCHARTS.

What have we learned from these charts?

In two decades and change, we’ve seen the business world shift away from oil producers and industrial-engineering companies while software, online services, and consumer electronics soared higher and higher. Amazon and Apple were mere minnows at the start of this adventure, with respective market caps of $27 billion and $17 billion at the turn of the millennium.

Over the same period, the early leaders have fallen out of sight. These days, General Electric and ExxonMobil are so far behind that they don’t even belong in this conversation anymore. (The bigger they are, the harder they fall.)

Come back in another couple of decades, and the list of the market’s largest market caps will probably look very different once more. Not even Apple and Microsoft are immune to market shifts and new challengers in the long run. The biggest winners in this millennium weren’t the largest blue-chip companies at the start of the race, but the smaller and hungrier upstarts that were still piecing together their long-term business plans:

AAPL TOTAL RETURN PRICE DATA BY YCHARTS.

The post The world’s most valuable companies from 2000 to 2022 appeared first on The Motley Fool Australia.

More reading

• Beers and planes: 3 ASX shares killing it right now
• Amazon earnings: What to watch on April 28
• Forget the stock split — 2 bigger reasons to be excited about Amazon stock
• Shopify, Alphabet, Amazon, and Tesla stocks are splitting — which ones are the best buys?
• Is Amazon stock a buy this month?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, 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 Alphabet (A shares), Alphabet (C shares), Amazon, and 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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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.

Tesla (NASDAQ: TSLA) has captured the spotlight once again with another showstopper of a quarter. Fans may flock to the company’s top and bottom-line growth, the continued success of the Model Y crossover SUV, or its timely rollout of new factories in Germany and Texas. But critics may cringe at Tesla’s lofty valuation and CEO Elon Musk’s erratic behavior on social media and on other public platforms.

Tesla has been, and continues to be, a battleground stock with a riveting bull and bear case. Here’s why the electric car stock may or may not be worth considering now. 

A sign of things to come

Howard Smith (Tesla): Tesla shares soared after it just reported results for its 2022 first quarter. While the stock move brings the electric vehicle (EV) leader’s already lofty valuation even higher, there are reasons to think it is justified. That valuation is what has kept many investors from buying Tesla stock. At its recent market cap of about $1.1 trillion, the stock has a price-to-earnings (P/E) ratio of 200 based on 2021 earnings. But the most recent quarterly results show why that could still make sense. 

Tesla earned $5.5 billion in all of 2021, and it already has booked net income of $3.3 billion in the first quarter of 2022. The company grew revenue 81% in the first quarter compared to the prior-year period. But it’s really the bottom line profitability that should catch investors’ attention. 

Tesla reported an operating margin of 19.2%, which shows just how much it stands out compared to traditional automakers. For perspective, while it hasn’t announced first-quarter results yet, General Motors (NYSE: GM) reported an adjusted operating margin of just 11.3% for 2021. 

That level of profitability comes in an environment of inflation driving rising raw material costs. Additionally, Tesla has had to overcome the suspension of production at its Shanghai plant due to restrictions implemented to fight the spread of a COVID-19 wave. 

Even with that headwind, CEO Elon Musk said the company could still achieve 60% growth in its year-over-year vehicle deliveries. With its new plants near Berlin, Germany and Austin, Texas just beginning production, there looks to be plenty of growth still ahead for Tesla.

The company has shown it can operate efficiently even as other manufacturers struggle with supply chain constraints and rising costs. The results from the first quarter may just be a sign of things to come for Tesla. Investors with a place in their portfolio for higher risk growth stocks could do well to include Tesla there. 

Tesla keeps demonstrating it is worth a premium price

Daniel Foelber (Tesla): As Howard mentioned, one of the primary reservations that investors have when deciding whether to buy Tesla stock or not is its valuation. And if we know anything about history, hesitating to buy an excellent company on valuation alone is usually a bad idea. Great companies have a habit of growing into their valuation. That hasn’t happened yet with Tesla. But there are signs that Tesla could one day be affordable.

One of the common complaints you’ll hear about Tesla is that it can never sell enough cars to be worth $1 trillion, let alone grow to a $2 trillion market cap. But the difference between Tesla and legacy automakers is that it’s simply a much better business. As Howard said, Tesla continues to sport a high operating margin relative to the industry. Tesla just began delivering vehicles produced from its new factories in Germany and Texas. With those two capital-intensive mega projects now in the past, the full effect of Tesla’s profitability is coming into frame.

Tesla’s Q1 2022 operating margin of 19.2% resembles a low overhead tech company more so than an automaker. Tesla’s profitability is due in part to doing a lot of things in-house and controlling its sales and distribution, which helps it keep costs down and rely less on external suppliers. And even as the company cited supply chain disruptions and higher raw material costs as challenges for the quarter, Tesla’s high average selling price and ability to reduce costs largely offset these headwinds. 

Tesla is growing fast and is more profitable than ever, with Q1 2022 revenue up 87% year-over-year (YOY) to $16.86 billion and adjusted diluted non-GAAP earnings per share (EPS) up 246% YOY to $3.22. The run rate for those figures would give Tesla 2022 sales of $67.44 billion and $12.88 in adjusted diluted EPS — giving it a forward price to sales ratio of 15.9 and a forward price to earnings ratio of 79.2 — not cheap by any stretch of the imagination.

Tesla is undeniably the best company in the auto industry and could very well accelerate its growth and continue to look like it deserves to be worth a lot more than critiques say it should be. But in terms of being the best stock, I would simply argue that there are better ways to invest in the growth of EVs than solely buying Tesla. If this market has taught us anything, it’s that valuation does matter. The risk/reward for Tesla just doesn’t seem to be worth it quite yet, especially given some of the amazing growth stocks that are on sale right now.

A compelling success story in a struggling industry

Tesla has always had impressive technology. But over the past few years, it has evolved to become a very well-run and profitable business that continues to earn more revenue, profit, and free cash flow. The biggest advantage that Tesla has over the competition is that nearly 100% of its cash flow gets poured into its core business, while other legacy automakers still have a lot of costs associated with internal combustion engine divisions. Put another way, Tesla can sustain its momentum and outpace the growth of its competition. For that reason, Tesla may be worth considering now for risk-tolerant investors that can stomach volatility. But for everyone else, it’s OK to wait too. 

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

The post Tesla stock: Bull vs. Bear appeared first on The Motley Fool Australia.

More reading

• Is it too late to buy Tesla shares?
• Is Elon Musk really going to buy Twitter?
• 3 reasons Tesla’s monster earnings can help it keep crushing the Nasdaq in 2022
• Why investors are selling Tesla stock ahead of today’s earnings
• Can the Tesla share price really quadruple from here?

Daniel Foelber has the following options: long May 2022 $705 puts on Tesla and short May 2022 $700 puts on Tesla. Howard Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns 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 Bruce Jackson.

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

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The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Two that analysts at Goldman Sachs believe have huge potential are listed below. Here’s why the broker is tipping them to more than double in value over the next 12 months:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX small cap share that Goldman is bullish on is Hipages.

It is a leading Australia-based online platform and software as a service (SaaS) provider that connects consumers with trusted tradies.

Goldman Sachs believes Hipages has a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia. It has previously likened the company to Carsales.Com Ltd (ASX: CAR) and REA Group Limited (ASX: REA) in their early days.

It said: “In our view, the opportunity for HPG is similar to REA/CAR, which are now the leading online platforms in their respective industries.”

Goldman has a buy rating and $3.60 price target on its shares. Based on the current Hipages share price of $1.34, this implies potential upside of 168% for investors.

Nitro Software Ltd (ASX: NTO)

Another small cap tipped to shine is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world with its increasingly popular Nitro Productivity Suite.

This suite provides businesses with integrated PDF productivity and electronic signature tools. A testament to the quality of its software is that a number of the largest companies in the world use it. This includes over half of the Fortune 500.

Goldman Sachs believes Nitro has enormous growth potential as a challenger in a US$34 billion total addressable market (TAM) across PDF, e-signing and workflows.

It said: “Nitro operates in large, underpenetrated markets supported by structural growth tailwinds including remote work, enterprise digitisation and e-signing adoption. We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro’s current revenue base.”

Goldman has a buy rating and $2.60 price target on its shares. Based on the latest Nitro share price of $1.23, this suggests potential upside of 111%.

The post Goldman Sachs says these small cap ASX shares can double in value appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares analysts believe have enormous growth potential
• 2 buy-rated ASX growth shares that analysts say can double
• 3 top ASX growth shares that experts say are buys
• Broker names 2 exciting ASX shares to buy with 80% upside potential
• Here are 3 growth shares analysts are tipping to rocket 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. owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Nitro Software 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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