Tag: Motley Fool

  • Why Goldman Sachs rates these ASX 200 shares as buys

    A man holding a cup of coffee puts his thumb up and smiles while at laptop.

    A man holding a cup of coffee puts his thumb up and smiles while at laptop.

    As its name implies, the ASX 200 index is home to 200 shares for investors to choose from.

    But which ones could be buys?

    Well, to help narrow things down for you, I have picked out a couple of ASX 200 shares that Goldman Sachs rates very highly.

    Here’s what the broker is saying about these shares right now:

    Endeavour Group Ltd (ASX: EDV)

    The first ASX 200 share that has been given the thumbs up by analysts at Goldman Sachs is Endeavour.

    It is the drinks giant behind brands such as Dan Murphy’s, BWS, Pinnacle Drinks, Langtons, Jimmy Brings, and Paragon Wine Estates. In addition, the company has a network of 344 hotels and scalable digital platforms.

    Goldman Sachs is a big fan of the company and believes its shares are good value based on its leadership position, defensive qualities, and positive outlook. It said:

    Most attractive valuation amongst Staples peers: We continue to see defensiveness in the company’s Retail business with relative market share of ~35% vs COL liquor of ~13%, 5.2mn active My Dan’s members. EDV is currently trading at FY24e P/E of 18.4x with FY23-25e EPS CAGR of ~5%, which is the cheapest vs WOW, COL, WES.

    The broker currently has a buy rating and $6.40 price target on the company’s shares.

    Woolworths Limited (ASX: WOW)

    Another ASX 200 share that has been named as a buy by analysts at Goldman Sachs is Woolworths.

    It is of course Australia’s largest supermarket operator. In addition, it owns Big W and has a growing pet care business.

    Goldman Sachs likes Woolworths due to its industry leadership and potential for further market share gains. This is thanks to its loyalty program and omni-channel advantage. The broker explains:

    We are Buy rated (on Conviction List) on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as pass through any cost inflation to protect its margins, beyond market expectations.

    Goldman has a buy rating and $42.30 price target on its shares.

    The post Why Goldman Sachs rates these ASX 200 shares as buys appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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

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  • Not confident to invest? I’d follow these 2 Warren Buffett tips

    Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett

    Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett

    One of the hardest parts of an investment journey is simply getting started.

    It can be overwhelming to part with your hard-earned money and put it into ASX shares.

    But history shows that doing so can be very rewarding. For example, over the last 30 years, the Australian share market has delivered an average return of approximately 10% per annum.

    This means that if you had invested $10,000 into ASX shares three decades ago and earned the market return, it would have compounded into approximately $175,000.

    And that’s just a single investment. If you had added to your holding periodically, your wealth would have ballooned further.

    But if you’re still not sure, then it could be worth listening to some Warren Buffett tips to give you confidence.

    He has been investing with Berkshire Hathaway (NYSE: BRK.B) since the 1960s and has seen it all. And, importantly, he has beaten the market over multiple decades.

    Warren Buffett tip #1

    The first Warren Buffett tip for beginner investors to think about relates to buying wonderful companies.

    It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

    While it would be amazing to buy a wonderful company at a dirt-cheap price, this rarely happens to the highest quality investment options.

    So, don’t be afraid to buy the very best shares at a fair price. Over the long term, the returns are likely to still be superior to buying an average company at a cheap price.

    Tip #2

    Another thing that Warren Buffett emphasises is that you don’t have to always pick absolute winners to be successful. Just a few winners in a portfolio over time can generate significant wealth for you.

    The weeds wither away in significance as the flowers bloom. Over time, it takes just a few winners to work wonders.

    The key is to build a balanced portfolio of high-quality ASX shares and let time and compounding do its thing.

    The post Not confident to invest? I’d follow these 2 Warren Buffett tips appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    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 Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Brokers say these 3 ASX dividend shares are buys

    Happy man holding Australian dollar notes, representing dividends.

    Happy man holding Australian dollar notes, representing dividends.

    If you want to strengthen your income portfolio this month with some new additions, then it could be worth looking at the ASX dividend shares listed below that brokers rate as buys.

    Here’s what they are forecasting from them:

    Dexus Industria REIT (ASX: DXI)

    The team at Morgans believes that Dexus Industria could be an ASX dividend share to buy.

    It is a real estate investment trust primarily invested in high quality industrial warehouses located across Sydney, Melbourne, Brisbane, Perth, and Adelaide.

    The broker believes its portfolio will underpin dividends per share of 16.4 cents in FY 2024 and 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $2.78, this will mean dividend yields of 5.9% and 6%, respectively.

    Morgans currently has an add rating and $3.18 price target on its shares.

    Macquarie Group Ltd (ASX: MQG)

    Another ASX dividend share that brokers are positive on is investment bank Macquarie.

    While Morgan Stanley is expecting a relatively tough year in FY 2024, it is feeling upbeat about the company’s medium term outlook.

    As for dividends, the broker is forecasting partially franked dividends of $6.45 per share in FY 2024 and $6.75 per share in FY 2025. Based on the current Macquarie share price of $188.33, this will mean yields of 3.4% and 3.6%, respectively.

    Morgan Stanley has an overweight rating and $202.00 price target on the company’s shares.

    NIB Holdings Limited (ASX: NHF)

    Analysts at Goldman Sachs think that NIB could be an ASX dividend share to buy.

    It is an Australian health insurance company providing health and medical insurance to over one million Australian residents.

    The broker thinks it could be a good option as it “offers defensive exposure to the private health insurance sector which is experiencing favourable operating trend.”

    In respect to income, the broker is expecting the private health giant to pay fully franked dividends per share of 29 cents in FY 2024 and 33 cents in FY 2025. Based on the current NIB share price of $7.98, this will mean 3.6% and 4.1%, respectively.

    Goldman currently has a buy rating and $8.40 price target on its shares.

    The post Brokers say these 3 ASX dividend shares are buys appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    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 Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and NIB Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • 3 ASX shares predicted to enjoy ‘strong growth’ in 2024 earnings

    man and woman looking at mobile phones in a celebratory mannerman and woman looking at mobile phones in a celebratory manner

    There are many ways to judge whether to buy an ASX stock, but a classic and reliable metric is earnings growth.

    And that’s exactly why the team at the Elvest Fund is bullish on three particular ASX shares.

    All these stocks are already on the way up, thanks to their earnings trending higher:

    Earnings driver #1: A huge takeover

    Navigator Global Investments Ltd (ASX: NGI) recently reached a major corporate milestone.

    “NGI completed the acquisition of the Strategic Portfolio (3 January) from GP Strategic and provided an assets under management (AUM) update for the quarter ended 31 December,” read an Elvest memo to clients.

    The deal is a huge boost for its fortunes.

    “NGI emerges from the transaction as a larger, more diversified business with a stronger balance sheet and an enhanced partnership with major shareholder, GP Strategic, a leading capital provider to US asset managers.

    “The AUM update brought no surprises with Group AUM rising slightly to US$26.1 billion.”

    Although sparsely covered, NGI shares are rated as strong buy by both the analysts currently surveyed on CMC Invest.

    Earnings driver #2: Huge jackpots

    You may have heard that last week Powerball jackpotted to a massive $200 million.

    These types of headline-grabbing events are a boon for lottery services providers, such as Jumbo Interactive Ltd (ASX: JIN).

    “This should aid customer acquisition, online engagement and FY24 profitability.”

    The future looks bright for Jumbo Interactive, according to the Elvest memo.

    “Looking ahead, specifically to FY25 and beyond, we forecast improving operating leverage as further increases in online penetration, lottery ticket price rises and flat Lottery Corporation Ltd (ASX: TLC) fees all combine to generate strong growth in Australian earnings.”

    The company also has a nice side hustle going overseas.

    “Equally as promising is Jumbo Interactive’s sharpened global expansion strategy, this time as a software vendor, rather than a retailer, in offshore markets.”

    Earnings driver #3: Huge disasters

    The arrival of El Nino late last year was meant to put an end to the flooding disasters Australia suffered over the preceding years, but this summer the calamity has continued.

    As a disaster insurance claims repairer, the Elvest team noted how the Johns Lyng Group Ltd (ASX: JLG) share price rose in January.

    “Johns Lyng rallied in anticipation of further growth in their contracted catastrophe (CAT) work-in-hand, reflecting the recent spate of disaster events in eastern Australia.”

    But the company is not just relying on random natural events for earnings. It has other activities going on that are under their own control, such as strata work and overseas expansion.

    “The business remains well positioned to grow its business as usual (BAU) earnings in both Australia and the US, and we see an upgrade to full year earnings forecasts at the 1H24 result as a possibility.”

    The post 3 ASX shares predicted to enjoy ‘strong growth’ in 2024 earnings appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    Motley Fool contributor Tony Yoo has positions in Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group, Jumbo Interactive, and Lottery. The Motley Fool Australia has recommended Johns Lyng Group and Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • 5 things to watch on the ASX 200 on Wednesday

    Smiling man with phone in wheelchair watching stocks and trends on computer

    Smiling man with phone in wheelchair watching stocks and trends on computer

    On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled for a second day in a row. The benchmark index ended the day 0.6% lower at 7,581.6 points.

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

    ASX 200 expected to rebound

    The Australian share market looks set for a better day on Wednesday despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 51 points or 0.7% higher. In late trade on Wall Street, the Dow Jones is up 0.1%, the S&P 500 has fallen 0.1%, and the Nasdaq is 0.4% lower.

    Oil prices push higher

    It could be a decent session for ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.9% to US$73.45 a barrel and the Brent crude oil price is up 0.95% to US$78.66 a barrel. This was driven by US tensions with Iran.

    Seven Group rated as a hold

    The Seven Group Holdings Ltd (ASX: SVW) share price could be close to being fully valued according to analysts at Bell Potter. This morning, the broker has retained its hold rating and $38.00 price target on the diversified investment company’s shares. It notes: “Dealer unit sales for Resource Industries in the APAC region have declined 10% and 1% YoY in the September and December 2023 quarters, respectively.”

    Gold price rises

    ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price rose overnight. According to CNBC, the spot gold price is up 0.45% to US$2,052.2 an ounce. A softer US dollar boosted the precious metal.

    Centuria Industrial update

    Centuria Industrial REIT (ASX: CIP) shares will be on watch on Wednesday when the industrial property company releases its half year results. Morgans commented: “We expect portfolio metrics to remain stable vs Jun-23. We note occupancy slightly trended up during the 1Q. WALE around 7 years.” This result could have implications for Goodman Group (ASX: GMG) shares.

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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

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  • Own Telstra shares? Here’s your half-year results preview

    A woman uses her mobile phone to make a purchase.

    A woman uses her mobile phone to make a purchase.

    All eyes will be on Telstra Group Ltd (ASX: TLS) shares next week.

    That’s because the telco giant will be releasing its half-year results on 15 February.

    But what should investors expect from Telstra’s first half? Let’s take a look and find out.

    Telstra half-year results preview

    According to a note out of Goldman Sachs, its analysts are expecting Telstra to report EBITDA of $4,054 million and earnings per share of 9 cents. This is broadly in line with the consensus estimate of $4,038 million and 9 cents, respectively.

    If Telstra delivers on expectations, it will mean a healthy ~15% increase on what was recorded during the prior corresponding period. For that period, Telstra posted EBITDA of approximately $3,500 million.

    As for dividends, Goldman is forecasting an increase to 18 cents per share for the full year (from 17 cents per share). This is likely to mean an 8.5 cents per share interim dividend next week.

    Should you buy Telstra shares?

    Goldman believes investors should be snapping up the company’s shares while they can.

    This is due to its low risk earnings and dividend growth, attractive valuation, and potential asset divestments. It said:

    We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn. […] Hence in an uncertain 2023 we rate Telstra Buy.

    The broker has a buy rating and $4.65 price target on its shares.

    The post Own Telstra shares? Here’s your half-year results preview appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    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 Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Want to buy ASX 200 bank shares? You need to read this

    A woman looks questioning as she puts a coin into a piggy bank.A woman looks questioning as she puts a coin into a piggy bank.

    The big bank shares are a major presence in the Australian stock market, especially the S&P/ASX 200 Index (ASX: XJO).

    Even if you don’t hold any directly, if you own an Australian index exchange-traded fund (ETF) there is a good chance that your portfolio is exposed to the sector.

    After 13 interest rate rises over the past couple of years, the big banks have all had a great excuse to boost their margins.

    And investors have been flocking to them in recent weeks.

    “Despite some grim economic forecasts, the share prices of Australian banks have performed well over the past three months,” read a recent VanEck blog post.

    Commonwealth Bank of Australia (ASX: CBA) for example, recently hit an all-time high of $115.98 per share.”

    So is it a great time to buy, or even hold, bank shares right now?

    Bank shares priced for perfection

    The opinion of the VanEck analysts is that the valuations for the major banks are now “stretched”.

    “Australian banks, on a global basis, are the most expensive in the developed world on a 12-month forward price-to-earnings and price-to-book basis.”

    The worry is that this latest rally indicates investors are pricing in the best-case scenario for the sector.

    “While Australia’s prospects for a soft landing have improved for 2024, the market seems to be pricing a dream scenario for the banks despite the risks of increased mortgage stress in a prolonged higher interest rate environment. 

    “It was also only a few months ago that banks were consumed by a mortgage price war.”

    Higher interest rates haven’t been the party that investors were expecting

    CBA is easily the best-performed bank stock in recent years. But it’s not just that one that seems overcooked.

    “Each of Australia’s ‘Big 4’ banks face continuing headwinds in 2024,” read the blog post. 

    “A subdued economic outlook and potential RBA rate cuts could see the Big 4 banks’ net interest margins (NIMs) continue to deteriorate.”

    Despite the rate hikes, hot competition has meant margins haven’t actually expanded that much. If anything, they’re already on the way down.

    “A reduction in NIMs results in a reduction in cash earnings and will impair the Big 4’s ability to increase dividend payments.”

    Indeed this is why the major banks are on the nose with professional investors at the moment.

    CMC Invest currently shows:

    • 0 out of 16 analysts rating CBA as a buy
    • 6 of 17 analysts rating Westpac Banking Corp (ASX: WBC) as a buy
    • 6 of 17 analysts rating National Australia Bank Ltd (ASX: NAB) as a buy
    • 7 of 16 analysts rating ANZ Group Holdings Ltd (ASX: ANZ) as a buy

    The post Want to buy ASX 200 bank shares? You need to read this appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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

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  • 2 ASX growth stocks that could turn $10,000 into $30,000 by 2030

    Elegant lady with make up wearing jewellery and sitting on a chair.Elegant lady with make up wearing jewellery and sitting on a chair.

    Do you want to triple your money in six years?

    Who doesn’t, right? 

    While no one can make any guarantees, every investor can, after careful research, make some educated buys to attempt this goal.

    My favoured method of reaping such spectacular gains would be through ASX growth stocks.

    I think they have more potential for big gains — at a higher risk — than, say, dividend stocks, which might be better for nerves.

    Here are two ASX growth shares that currently have the potential to turn your $10,000 into $30,000 by the start of the next decade:

    The growth stock that heals the world

    Avita Medical Inc (ASX: AVH) is a biotechnology company founded by 2005 Australian of The Year Dr Fiona Wood.

    The company’s flagship product is a spray-on skin for burns patients.

    Like most stocks in that industry, Avita shares have swung wildly up and down over the years.

    However, enough has gone right in recent times to push the stock 292% upwards since June 2022.

    Even going back five years, the Avita share price has doubled.

    The compound annual growth rate (CAGR) over the past 20 months is well over 100%, and the five-year rate is just under 15%.

    To grow $10,000 to $30,000 by 2030, your investment needs to expand at around 20% per annum.

    Remembering past performance is no indicator of the future, a replication of Avita’s recent history could easily take investors to our end-of-decade target.

    Professional investors are convinced Avita shares will make a decent run-up, with CMC Invest showing nine out of 10 analysts rating it as a buy.

    I want my Jimmy Choos, regardless of inflation

    Cettire Ltd (ASX: CTT) is an online retail platform for selling luxury goods.

    Apparently the economic downturn in the west and in China over the past two years hasn’t dented the global demand for expensive fashion.

    Again, like Avita Medical, this growth stock has definitely had massive peaks and troughs.

    However, since listing in December 2020, overall the result is that Cettire shares are now trading 529% higher.

    That’s an impressive CAGR of 79%.

    Even as the business matures, making 20% a year until 2030 is not out of the question.

    Three of four analysts believe Cettire shares are a buy right now, according to CMC Invest.

    The post 2 ASX growth stocks that could turn $10,000 into $30,000 by 2030 appeared first on The Motley Fool Australia.

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    Motley Fool contributor Tony Yoo has positions in Avita Medical. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Avita Medical. The Motley Fool Australia has recommended Avita Medical and Cettire. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • If you’d put $20,000 in this ASX healthcare stock in December 2021, you’d have $257,000 now

    Male Lab Worker Wearing White Coat Recording Test Results On Computer.Male Lab Worker Wearing White Coat Recording Test Results On Computer.

    Even though you buy every ASX stock full of hope, the harsh reality is that not every investment will make you money.

    In fact, one must mentally prepare for the inevitability that some stocks will lose you money.

    This is not defeatist or alarmist. It’s the truth.

    But there is good news.

    It’s that if you diversify your portfolio competently, there might be a few winners that can balance out the losers.

    Those winners can sometimes go further than merely cancel out the losses. They could carry the portfolio to huge gains.

    I’ve spoken to many professional investors over the years, and even they all admit they don’t achieve anywhere near a 100% success rate. 

    Fund managers would happily accept 6 of their 10 stock picks returning a profit.

    So with this in mind, let’s take a look at an example of a huge winner that’s had the heft to carry many losers:

    Revenue coming in, R&D continuing

    Back on 3 December 2021, Neuren Pharmaceuticals Ltd (ASX: NEU) shares closed the day at $1.77.

    Let’s say you bought $20,000 of the healthcare stock on that day.

    Since then the company has gone from strength to strength.

    First it was the commercial release of its Daybue product, which is still the only approved therapy in the world for Rett Syndrome.

    A licensing agreement with Acadia Pharmaceuticals Inc (NASDAQ: ACAD) allows the US giant to manufacture Daybue, in return for royalties paid to Neuren.

    So that created a flow of cash coming in for the Australian outfit to work on other drugs.

    In the past year, favourable testing and regulatory developments for its NNZ-2591 product has sent the stock price soaring.

    In fact, Neuren Pharmaceuticals ended up as the best performer on the S&P/ASX 200 Index (ASX: XJO) in 2023.

    How one healthcare stock could cure the ailments of others

    Now, back to that $20,000 you invested just over two years ago.

    That’s now worth a cool $257,062.

    Showing you such an example isn’t meant to send you scrambling to speculate on overnight winners.

    The lesson you should be getting out of this is that a few winners in your portfolio will absolutely obliterate the losses.

    On 3 December 2021, no one knew how Neuren shares would have turned out in 2024.

    So imagine that, in order to diversify your risk, you also bought nine other stocks for $20,000 each.

    Incredibly, in an absolute disaster, those other stocks all sank to $0.

    Guess what? Your portfolio is still 29% up.

    By the way, even now all five analysts surveyed on CMC Invest rate Neuren shares as a buy.

    The post If you’d put $20,000 in this ASX healthcare stock in December 2021, you’d have $257,000 now appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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

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  • Here are the top 10 ASX 200 shares today

    Modern accountant woman in a light business suit in modern green office with documents and laptop.

    Modern accountant woman in a light business suit in modern green office with documents and laptop.

    The S&P/ASX 200 Index (ASX: XJO) endured another tough day today, as ASX investors gave the share market a thumbs down following the Reserve Bank’s decision to leave interest rates on hold this Tuesday.

    After a rough day yesterday, the ASX 200 doubled down. The index ended up losing another 0.58% to finish up at 7,581.6 points.

    This red day follows an equally depressing night over on Wall Street last night.

    The Dow Jones Industrial Average Index (DJX: .DJI) kicked off the American trading week with a hefty 0.71% loss.

    The Nasdaq Composite Index (NASDAQ: .IXIC) didn’t quite fare that poorly, but still retreated by 0.2%.

    But time now to return to the local markets, with a look at how the different ASX sectors came out of the wash today.

    Winners and losers

    It was another near wipeout for the different corners of the market, with again only one ASX sector escaping with a rise.

    But first, the biggest losers from today’s trading were tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) had a terrible time today, cratering by 1.8%.

    ASX gold stocks also had a bad hair day. The All Ordinaries Gold Index (ASX: XGD) tanked by a chunky 1.24%.

    Then we have broader mining shares. The S&P/ASX 200 Materials Index (ASX: XMJ) was close behind gold, losing 1.13% of its value.

    Utilities stocks were also on the nose, evidenced by the S&P/ASX 200 Utilities Index (ASX: XUJ)’s slump of 0.9%.

    Real estate investment trusts (REITs) were another source of disappointment. The S&P/ASX 200 A-REIT Index (ASX: XPJ) was eroded by 0.89%.

    Industrial shares had a doozy too, with the S&P/ASX 200 Industrials Index (ASX: XNJ) retreating by 0.59%.

    Healthcare stocks came next, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) unable to replicate yesterday’s gains with its fall of 0.43%.

    Then we had the financial sector. The S&P/ASX 200 Financials Index (ASX: XFJ) took a 0.41% hit this Tuesday.

    Communications stocks went backward today as well, illustrated by the S&P/ASX 200 Communication Services Index (ASX: XTJ)’s drop of 0.31%.

    Consumer staples shares didn’t escape the pain either. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) slid down 0.24%.

    Finally, consumer discretionary stocks finished lower too, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) slipping 0.03%.

    The only space that proved safe for investors today was energy. The S&P/ASX 200 Energy Index (ASX: XEJ) bucked the pessimism to close 0.43% higher.

    Top 10 ASX 200 shares countdown

    Today’s best index performer turned out to be auto dealership company Eagers Automotive Ltd (ASX: APE).

    Eagers shares had a decent, if unspectacular, time today, rising 2.91% to $14.50 a share. That was despite a lack of any fresh news or developments with the company.

    Here’s how the rest of the winners from today’s trading turned out:

    ASX-listed company Share price Price change
    Eagers Automotive Ltd (ASX: APE) $14.50 2.91%
    Lynas Rare Earths Ltd (ASX: LYC) $5.84 2.82%
    Inghams Group Ltd (ASX: ING) $4.44 2.78%
    Graincorp Ltd (ASX: GNC) $8.48 2.42%
    Harvey Norman Holdings Limited (ASX: HVN) $4.44 2.30%
    Paladin Energy Ltd (ASX: PDN) $1.395 2.20%
    AMP Ltd (ASX: AMP) $0.965 2.12%
    Chorus Ltd (ASX: CNU) $7.56 2.02%
    Orora Ltd (ASX: ORA) $2.83 1.80%
    ARB Corporation Ltd (ASX: ARB) $35.48 1.66%

    Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

    The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    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 positions in and has recommended ARB Corporation. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended ARB Corporation, Eagers Automotive Ltd, and Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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