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The team at Morgans has been running the rule over a number of ASX 200 shares once again.

Among its best ideas for April are the shares listed below. Here’s why they broker rates these ASX 200 shares highly:

QBE Insurance Group Ltd (ASX: QBE)

Morgans is feeling bullish about this insurance giant’s shares and believes they could be in the buy zone. This is due to premium increases, its positive cost cutting outlook, and attractive valuation. The broker currently has an add rating and $13.50 price target on its shares.

It said: “With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~14x FY22F PE.”

ResMed Inc (ASX: RMD)

Another ASX 200 share that Morgans has on its best ideas listed is ResMed. The broker is very positive on the sleep treatment focused medical device company due to its long term growth outlook. Morgans has an add rating and $40.46 price target on the company’s shares.

Its analysts commented: “While we believe the next few quarters will likely be volatile, as Covid-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

Seek Limited (ASX: SEK)

A final ASX 200 share on the broker’s best ideas list is Seek. Although Morgans only has a hold rating, its price target of $32.33 offers enough potential upside to warrant its inclusion. The broker feels Seek is well-placed to benefit from strong ad volumes.

Morgans said: “Of the classifieds players, we continue to see SEK as the one with the most relative upside, a view that’s based on the sustained listings growth we’ve seen over the period. The tailwinds that have driven elevated job ads (~250k currently, +35% on pcp) and updated guidance (FY22 EBITDA updated ~16% at the midpoint to A$490m-A$515m) appear to still remain in place, i.e. subdued migration, candidate scarcity and the drive for greater employee flexibility.”

The post Broker names 3 of the best ASX 200 shares to buy in April appeared first on The Motley Fool Australia.

More reading

• Analysts name 3 ASX 200 shares that could generate strong returns
• Worried about how the federal budget might impact your ASX shares? Here’s what Goldman says
• 3 ASX shares primed to bounce back: expert
• Growth will be back! Expert picks 7 ASX shares to buy now
• Broker names 2 ASX 200 shares to buy with almost 20% upside

Motley Fool contributor James Mickleboro owns SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. and SEEK 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 Allkem Ltd (ASX: AKE) share price is charging higher again on Tuesday.

In morning trade, the lithium miner’s shares are up 6.5% to a record high of $14.20.

Why is the Allkem share price rising today?

Investors have been bidding the Allkem share price higher today in response to announcements relating to its Olaroz and Sal de Vida operations in Argentina.

In respect to the former, Allkem has substantially expanded its resource in the Olaroz basin from 6.4 million tonnes of lithium carbonate equivalent (LCE) to 16.2 million tonnes of LCE. This comprises 5.1 million tonnes of measured resource and 4.6 million tonnes of indicated resource, with the remainder in inferred resource status.

This is expected to support a 25,000 tonnes per annum (tpa) expansion in capacity of the Olaroz Lithium Facility to a total 42,500 tpa.

What else?

In respect to Sal de Vida, the company has increased the total planned capacity to 45,000 tpa. This comprises stage one production of 15,000 tpa, which is up 40% on previous estimates, and the consolidation of stage two and three production into a single 30,000 tpa expansion.

The release also notes that management has revised its resource estimate to 6.85 million tonnes of LCE, which is a 10% increase from the previous estimate in 2021.

What’s next at Sal de Vida?

Sal de Vida stage one construction has already begun and management is now targeting its first production during the second half of 2023. In the meantime, stage two construction will commence upon the completion of stage one construction, with production expected approximately 24 months thereafter.

The total initial project development capital expenditure is estimated to be US$271 million for stage one. This estimate includes wellfields to ponds, the lithium carbonate plant, non-process infrastructure, and various indirect costs.

Operating expenditure is estimated to be US$3,612 per tonne LCE for stage one. This is predominately made up of reagents and also includes labour, energy and transport costs.

And with management expecting LCE prices to gradually decline to around US$15,000 per tonne by the mid-2020s as new supply reaches the market before climbing to US$19,000 per tonne over the long term, Sal de Vida looks set to be a very profitable operation.

All in all, stage one has a pre-tax net present value (NPV) of US$1.23 billion at a 10% discount rate and pre-tax internal rate of return (IRR) of 50%. Whereas stage two has a pre-tax NPV of US$1.81 billion and pre-tax IRR of 38% on a standalone basis.

The Allkem share price is now up 184% since this time last year.

The post Allkem (ASX:AKE) share price hits record high on Olaroz and Sal de Vida lithium updates appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Why Allkem, Iluka, Pendal, and Sayona Mining shares are charging higher
• ASX lithium shares set to deliver next positive surprise to investors
• 5 ASX mining shares rocking all-time highs on Friday
• Why Allkem, Argosy Minerals, Firefinch, and Tabcorp shares are charging higher

Motley Fool contributor James Mickleboro owns Allkem 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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There is no doubt one sector has ruled ASX shares in 2022.

While the S&P/ASX 200 Index (ASX: XJO) is now lower than where it started the year, the S&P/ASX 300 Metals & Mining (ASX: XMM) index is up a stunning 18%.

And many professional investors are forecasting the mining sector’s outperformance to continue.

“A commodity trading house may struggle to obtain the requisite insurance and finance to cover the purchase and transport of a shipment of Russian-origin commodities,” said Datt Capital chief investment officer Emanuel Datt last month.

“As such, almost overnight, we have seen an enormous uplift in demand for commodities of non-Russian origin to fill this sudden supply gap.”

This week a couple of experts picked out 3 ASX shares in the resources sector that still seem like great value at the moment:

Diversified miner enjoying strong demand

Marcus Today portfolio manager Thomas Wegner likes the look of South32 Ltd (ASX: S32) shares.

“The diversified miner achieved a record operating margin and a significant improvement in its underlying 2022 half-year result, despite lingering cost pressures,” he told The Bull.

The South32 share price is already up more than 31% this year, but Wegner still rates it as a “buy”. 

“Global infrastructure investment is expected to lift demand for the metals critical for a low carbon future, which will assist South32’s earnings,” he said.

“Aluminium, nickel, zinc, lead and silver contribute more than 44% to underlying earnings.”

It seems Wegner is not the only fan of South32.

According to CMC Markets, 15 out of 20 analysts rate the stock as a “strong buy”. The remaining five say “hold”.

Share price has hit the bottom

Fairmont Equities boss Michael Gable currently favours Pilbara Minerals Ltd (ASX: PLS) among the resources stocks.

“Growing demand for lithium is translating to rising share prices for lithium miners,” he said.

“Pilbara Minerals is one of Australia’s biggest producers.”

Pilbara shares have underperformed compared to the company’s mining peers, rising only 2.84% between market close on 4 January and their current price.

But Gable, as a technical analyst, feels the stock has turned a corner.

“Pilbara has reversed the downtrend from earlier this year and we expect the share price to move higher from here,” he said.

“The shares have risen from $2.57 on March 15 to trade at $3.215 on March 31.”

The Pilbara share price finished Monday at $3.62. In early trade on Tuesday, Pilbara shares are going for $3.74 apiece.

When you literally strike oil

The share price for Santos Ltd (ASX: STO) has popped more than 25% for the year.

But Wegner still likes the upside.

“Australia’s leading supplier of natural gas recently announced a significant oil discovery off the Western Australian coast.”

Even before that discovery, the business was performing well.

“Santos posted an underlying profit of US$946 million in fiscal year 2021 — a 230% increase on the prior corresponding period,” said Wegner.

“Santos is benefiting from global energy demand and rising crude oil and LNG prices.”

The analyst community very much agrees with Wegner.

According to CMC Markets, 14 out of 17 analysts rate the stock as a “buy”, while just three are remaining neutral with a “hold” rating.

The post 3 ASX shares to buy in the hottest sector right now: experts appeared first on The Motley Fool Australia.

More reading

• What sent ASX mining shares flaming higher in March?
• 5 things to watch on the ASX 200 on Tuesday
• The Pilbara (ASX:PLS) share price soared 18% in March. Here’s why
• Here are the 3 most heavily traded ASX 200 shares on Monday
• ASX lithium shares set to deliver next positive surprise to investors

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 Bruce Jackson.

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The world’s richest person and CEO of Tesla Inc (NASDAQ: TSLA) has managed to put a rocket under the share price of another US-listed company overnight. Specifically, the Twitter Inc (NYSE: TWTR) share price took flight after it was revealed that Elon Musk had taken a sizeable position.

Shares in the social media company had ascended more than 27% by the closing bell on Tuesday morning. Remarkably, the excitement resulted in an extra US$8.5 billion being added to Twitter’s market capitalisation during the session.

Let’s take a closer look at the details.

What’s behind Elon’s move into social media?

According to a securities filing, the billionaire has acquired approximately 73.5 million shares in Twitter. This significant investment places Musk’s stake at 9.2%, making him the largest shareholder in the company.

For those playing along at home, the electric vehicle visionary’s stake is worth around US$3.68 billion (A$4.88 billion). While Musk’s indication of skin in the game of the 16-year-old social networking site was embraced by Twitter investors, to others the move might raise eyebrows.

Musk has a track record of entrepreneurial success going all the way back to the early days of PayPal Holdings Inc (NASDAQ: PYPL). Since then, he has gone on to create some of the most defining companies of the modern era with Tesla and SpaceX. However, a social media company is a far cry from electric vehicles and reusable rockets.

However, prior to the news behind the Twitter share price unfolding, the technology futurist had shown an interest in the social media industry.

On 25 March, Musk kicked off a conversation on the blue-bird emblemed platform. Posing a question to his more than 80 million followers, Elon asked:

Free speech is essential to a functioning democracy.

Do you believe Twitter rigorously adheres to this principle?

— Elon Musk (@elonmusk) March 25, 2022

https://platform.twitter.com/widgets.js

Following this, Musk toyed with various options for how to address the perceived free speech flaw of the platform. In doing so, the Tesla founder considered whether a new platform is needed while revealing he had given serious thought to starting his own.

What it all means for the Twitter share price?

Notably, some analysts have not ruled out the possibility of a buyout. Keep in mind that Elon Musk holds a net worth of approximately US$270 billion. Meanwhile, based on the Twitter share price, the social media company has a market cap of US$40 billion. This means the billionaire has the financial capability to make such a move.

For now, Musk sits atop the Twitter shareholder register with his 9.2% stake. The holding is more than quadruple that of the Twitter founder, Jack Dorsey.

Despite the leap upwards, the Twitter share price is still down 22% over the past year.

The post Birds are singing as the Twitter share price soars 27% on Elon Musk’s investment appeared first on The Motley Fool Australia.

More reading

• What sent ASX mining shares flaming higher in March?
• Carnage in 2022: Are these 2 top ASX 200 tech shares now buys?
• How did the Webjet share price travel in March?
• What’s up with the Magellan (ASX:MFG) share price lately?
• Gas is in hot demand. This is the ASX share I’d buy: expert

Motley Fool contributor Mitchell Lawler owns Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended PayPal Holdings, Tesla, and Twitter. The Motley Fool Australia has recommended PayPal Holdings. 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 ASX mining basket has outstripped its peers in 2022 and is now the leading sector this year to date.

Whilst other domains like financials have crept up in recent weeks, Australian resources players are surging to new heights as underlying markets roar.

The spillover is set to produce hefty free cash flow yields and potentially record dividends and/or buybacks for ASX miners and their shareholders, analysts say.

Compared to ASX large-caps, small-caps, and the wider market, the mining sector has given investors outsized returns in March and over the last 12 months (shown below).

What’s the situation?

The S&P/ASX 300 Metals & Mining Index (ASX: XMM) has surged more than 18% this year and is now up another 6% for the previous month.

Most of the upside in March was underscored by roaring commodity markets that have continued to surpass all expectations.

Iron ore has averaged US$118 per tonne so far in 2022, down from US$140 a year prior, whereas metallurgical coal earnings have been revised up to A$65 billion in 2022, according to Bloomberg data.

Prices are expected to average $348 per tonne before levelling off to $151 in 2027, Bloomberg forecasts show.

Not only that, but LNG exports are tipped to “more than double to A$70 billion in fiscal 2022, with spot prices likely to remain high for some time”, it reports.

Meanwhile, nickel prices have also shot north and are expected to fetch US$33,217 per tonne as the US opens on Monday.

Heavy bullishness on the commodity sector has resulted in global mining baskets surging to record heights in 2022.

With that, Australia is set to be a net benefactor, according to analysis from Bloomberg.

“Australia stands to gain from a surge in energy prices on prospects that the war in Europe will exacerbate global oil and gas shortages as nations shun supplies from Russia,” it reported.

“Exports are expected to hit a record $425 billion in the year to June 30 2022 – revised up by 12% from the December estimate – before dropping to $381 billion in the following 12 months on account of falling prices amid waning demand growth and elevated global output,” it added.

What ASX mining shares are surging?

Resource stocks have surged hard in 2022 on the back of this underlying market activity.

In the hydrocarbons space, Woodside Petroleum Limited (ASX: WPL) has spiked 50% in that time, whereas Santos Ltd (ASX: STO) is up 26%.

Iron ore giant and the world’s largest mining company BHP Group Ltd (ASX: BHP) has also lunged 26% higher whereas diversified miner Rio Tinto Limited (ASX: RIO) is a 21% gainer this year.

For even more diversified products, the Betashares Australian Resources Sector ETF (ASX: QRE) has flamed another 19% this year whilst the Vaneck Australian Resources ETF (ASX: MVR) is up 18%.

Other diversified miners like South32 Ltd (ASX: S32) have spiked 31% in the new year, while gold-bug Gold Road Resources Ltd (ASX: GOR) has surged 44%. Returns for each over the past few weeks is plotted below.

The post What sent ASX mining shares flaming higher in March? appeared first on The Motley Fool Australia.

More reading

• Gas is in hot demand. This is the ASX share I’d buy: expert
• 5 things to watch on the ASX 200 on Tuesday
• What’s on the cards for the Woodside share price in April?
• What are the tailwinds behind BHP shares in April?
• The Santos share price has gained 26% this year. Is it too late to buy?

Motley Fool contributor Zach Bristow 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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Some leading S&P/ASX 200 Index (ASX: XJO) tech shares have been hit heavily since the start of 2022.

A lower price doesn’t necessarily make a business more attractive to look at. However, if these businesses are still growing their operations at an attractive rate, the lower valuation may be interesting for investors.

Here are two ASX 200 tech share contenders:

Xero Limited (ASX: XRO)

The Xero Limited share price has fallen by around 30% since the start of the calendar year.

Citi is one of the brokers that likes Xero at the moment, with a buy rating and a price target of $132.60. That suggests a potential upside of around 30%.

However, the broker points out the amount of new businesses being created in the UK and Australia is dropping, implying that Xero’s supply of potential new clients is slowing. There are also more businesses closing down in those two countries.

Australia and the UK represent two of Xero’s biggest markets. On 30 September 2021, Xero had 1.24 million Australian subscribers and 785,000 UK subscribers. Xero’s global subscriber numbers have continued to rise – it reached three million (up 23%) in the first half of FY22.

The ASX 200 tech share is utilising its revenue growth and high gross profit margin (of more than 87%) to re-invest significantly back into the business. It’s investing in both organic growth and acquisitions. For example, it recently acquired the LOCATE Inventory business, a US-cloud-based inventory management provider, to better support the inventory needs of small business and enhance its e-commerce capability.

Xero is embedding LOCATE’s inventory and e-commerce talent and capability within Xero to enhance its inventory management offering. Management said this would help meet increased small business demand for inventory and cash flow management tools.

REA Group Limited (ASX: REA)

The REA Group share price has fallen by around 20% since the start of the 2022 calendar year.

It’s the largest digital real estate portal business in Australia. Its operations include realestate.com.au, realcommercial.com.au, flatmates.com.au, Smartline Home Loans, Mortgage Choice, PropTrack, and Simpology.

The ASX 200 tech share also has a presence in Asia and North America. It has investments in property sites in India, China, the US, Malaysia, Singapore, Thailand, Vietnam, and Indonesia.

Morgan Stanley is one of the brokers that currently rates REA Group as a buy, with a price target of $178. That implies a potential upside of more than 30%. The broker is optimistic about the business and suggests it could buy a larger stake in Move to boost future growth.

The REA Group FY22 half-year result included double-digit growth with core earnings before interest, tax, depreciation, and amortisation (EBITDA) rising 27% to $368 million and net profit after tax (NPAT) going up 31% to $226 million.

As part of the HY22 report announcement, the ASX 200 tech share’s trading update said residential property market conditions remained favourable. In January 2022, national residential new listings were up 14% year on year, with Sydney listings up 19%.

It’s also targeting full-year ‘positive jaws’, excluding the impact of the REA India and Mortgage Choice acquisitions. In the second half, operating cost growth excluding acquisitions is expected to slow to high-single-digit growth.

The post Carnage in 2022: Are these 2 top ASX 200 tech shares now buys? appeared first on The Motley Fool Australia.

More reading

• Why Xero can become ‘one of the big tech companies’: ASX expert
• Why Bank of Queensland, Block, Premier Investments, and REA shares are dropping
• 2 highly rated ASX 200 shares analysts are tipping as buys right now
• Top ASX shares to buy in April 2022
• Why is the Xero share price sliding 4% lower today?

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

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The Webjet Limited (ASX: WEB) share price travelled 5% higher last month after registering sluggish performance earlier on.

Nonetheless, investors appear to have mixed feelings when it comes to deciding the value of Webjet shares in the current climate.

At Monday’s market close, the online travel agent’s shares finished at $5.50, down 0.72%.

Is a full-recovery nearby of Webjet’s earnings?

It has been relatively quiet on the news front from Webjet, with its shares in a sideways channel of late.

A catalyst as to why Webjet shares have failed to take off significantly could be because of the war in Ukraine.

The Russian advance on its former soviet ally spooked global markets, sending the price of commodities to astronomical highs. This is particularly in relation to oil, which airlines need to fuel the planes. Most likely this leads to higher ticket prices from airlines, in which Webjet’s profit margins could be squeezed consequently.

In addition, with war raging on Europe’s doorstep, passengers might be less likely to travel to the region. A broader regional war is possible if a simple miscalculation occurs between NATO and Russia.

Webjet operates in 22 countries that include the United Kingdom, Ireland and Europe, the latter which is the biggest market.

In its first half results, the WebBeds division recorded $158 million in total transaction value (TTV) for Europe. Next on the list was the Asia Pacific region with $110 million, and North America at $93 million.

Webjet reported a cash surplus of $3.5 million per month, a significant turnaround compared to FY21. Severe lockdowns led the company to record an average monthly cash burn of $5.5 million in the previous financial year.

Webjet noted that TTV could reach pre-COVID levels by the second-half of FY23. The group portfolio will be a much leaner business, having trimmed 20% of operating costs.

All eyes will be on Webjet’s FY22 results which will be released sometime in late May.

Webjet share price summary

In the last 12 months, Webjet shares have gained around 4% after hitting the brakes in late January 2022. The share price closed at an eight-month low of $4.61 on 27 January.

Nonetheless, the company has gradually been moving on an upwards trend, but is still a long way off from pre-pandemic levels.

Based on valuation grounds, Webjet has a market capitalisation of around $2.09 billion, with approximately 380.51 million shares on issue.

The post How did the Webjet share price travel in March? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to buy next week
• Federal budget: Goldman Sachs names 4 ASX shares to buy
• Is the Webjet share price set to take off in April?
• Finally! 4 travel ASX shares ready to take off: expert

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet 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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The Magellan Financial Group Ltd (ASX: MFG) share price has started the week well, climbing 10% yesterday to start trade on Tuesday at $16.84.

The gain marks an 18% spike in shares over the past month after a harsh selling period that has seen Magellan shares tank 21% since January 4.

What’s up with Magellan shares?

The fund manager has suffered heavy losses in 2022 as it continues to underperform key benchmarks and its staff remains tied up in internal struggles.

Industry analysts at Bloomberg Intelligence, Matt Ingram and Jack Baxter, recently noted that Magellan may “face staff retention issues”, despite its efforts in ensuring more attractive compensation for employees.

“Magellan may face staff retention issues, we believe, despite its compensation initiative, which includes retention bonuses, amends repayment terms of its share-purchase plan (SPP), and offers employee options with a strike price of $35 vs. $16 at present,” the pair said.

“It doesn’t seem to address about $20 million of staff losses on the SPP due to a 71% stock-price slide since July – many employees need the price to top $50 to recoup their investment,” they added.

Fund outflows are likely to compound the problem, with chairman and former CIO Hamish Douglass’ recent departure. That followed soon after its former CEO Brett Cairns’ exit.

“The global fund’s performance issues and outflows, and management instability, could also prompt departures,” both analysts remarked.

“SPP loans funded by the firm, which may be valued around $19 million or $141,000 per employee for about $35 million of stock, were issued as a staff-retention step.”

These loans are required to be fully paid within three months of departure and therefore could disincentivise employees to leave.

Magellan released a prospectus for a special options package for eligible staff and shareholders that could see it raise up to $1.2 billion.

According to company filings in early March the funds giant had around $69 billion in funds under management, down from $110 billion in April 2021.

Meanwhile, 63% of analysts urge their clients to sell Magellan shares right now, with just one analyst saying to buy, according to Bloomberg data.

In the last 12 months, the Magellan share price has erased 65% and is down 21% this year to date.

The post What’s up with the Magellan (ASX:MFG) share price lately? appeared first on The Motley Fool Australia.

More reading

• Is it finally time to buy Magellan (ASX:MFG) shares?
• Magellan (ASX:MFG) share price dips despite free gift bonanza
• Magellan (ASX:MFG) share price up another 7% to 1-month high
• ASX 200 (ASX:XJO) midday update: Telstra CEO steps down, Fortescue confirms E.ON deal
• Why did the Magellan (ASX:MFG) share price soar 7% on Tuesday?

Motley Fool contributor Zach Bristow 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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Energy shares are absolutely buoyant at the moment.

Thanks to skyrocketing oil prices and embargoes on Russian supplies, companies producing the valuable commodity that all parts of the economy need are having a fine time.

Shares for Australia’s Woodside Petroleum Limited (ASX: WPL) have thus jumped an amazing 45.9% for the year so far.

In fact, the stock was the third best performing ASX share in the first quarter, gaining 46.4% in the three months to 31 March.

The company produces both oil and gas, so it’s no wonder.

But despite the massive uptick, one expert would still buy Woodside shares if the price was right.

Aussie gas is probably too far to send to Europe, but…

Shaw and Partners portfolio manager James Gerrish told his Market Matters newsletter that out of all the gas producers, he would buy Woodside if the price fell back to a certain point.

“We like the majors and will buy Woodside Petroleum Limited if it pulls back below $30.”

The stock closed Monday at $33.02.

Many European nations have an energy shortfall after discontinuing their Russian imports.

Australian gas producers, according to Gerrish, can’t directly take advantage of that situation but will cash in indirectly.

“The distance for Australian suppliers is too great in our view,” he said.

“However, higher demand from Europe puts upward pressure on gas in Asia. That supply can head north and we backfill the Asian void.”

According to CMC Markets, analysts are somewhat divided on Woodside.

Out of 16 experts surveyed, eight rate the stock as a “strong buy” and three as a “moderate buy”. However, there are four who are neutral and one who’s recommending a sell.

Woodside shareholders haven’t just enjoyed excellent capital growth in recent months. The stock also gives out a 5.66% dividend yield.

The company, founded in 1954, is headquartered in Perth, employing about 3,600 people around the world.

The post Gas is in hot demand. This is the ASX share I’d buy: expert appeared first on The Motley Fool Australia.

More reading

• What’s on the cards for the Woodside share price in April?
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares during the first quarter
• What boosted the Whitehaven Coal (ASX:WHC) share price on Friday?
• The Woodside share price gained 12% in March. Here’s why

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 Bruce Jackson.

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

Here’s why these ASX dividend shares have been tipped to as buys:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share to look at is the HomeCo Daily Needs REIT. It is a property company that invests in convenience-based assets across target sub-sectors of neighbourhood retail, large format retail, and health and services.

HomeCo Daily Needs has started FY 2022 very positively. During the first half, it reported a 38% increase in funds from operation per share, which was ahead of expectations and led to management upgrading its full year guidance.

Goldman Sachs is positive on the company and believes it is well positioned to benefit from the shift to omni channel retailing. It also notes that the company has additional external growth opportunities to drive earnings growth over the medium-term.

The broker has a buy rating and $1.70 price target on its shares. As for dividends, Goldman is forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.50, this will mean dividend yields of 5.3% and 6%, respectively.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share that could be worth considering is Super Retail. It is the retail company responsible for the BCF, Macpac, Rebel, and Supercheap Auto brands.

While trading conditions have been tough in FY 2022 due to COVID lockdowns and other headwinds, Super Retail has been tipped to bounce back by the team at Morgans..

In light of this and its very attractive valuation, the broker think now could be a good time to invest. Its analysts currently have an add rating and $13.80 price target on the company’s shares.

In respect to dividends, the broker is forecasting fully franked dividends of 59 cents per share in FY 2022 and 61 cents per share in FY 2023. Based on the current Super Retail share price of $10.40, this will mean yields of 5.7% and 5.9%, respectively.

The post Analysts name 2 ASX dividend shares with 5%+ yields to buy this week appeared first on The Motley Fool Australia.

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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. owns and has recommended Super Retail Group Limited. The Motley Fool Australia owns and has recommended Super Retail 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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