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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Allkem Ltd (ASX: AKE)

According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on this lithium miner’s shares to $15.24. This follows the release of a pricing update last week which revealed expectations for materially higher lithium prices during the current quarter. Outside this, the broker is a fan of Allkem due to the diversification of its operations (geographically and production type). The Allkem share price is trading at $13.40 on Monday afternoon.

Domain Holdings Australia Ltd (ASX: DHG)

A note out of Citi reveals that its analysts have retained their buy rating and $6.15 price target on this property listings company’s shares. This follows news that Domain is acquiring campaign management platform company Realbase for $180 million. While the broker has concerns over the premium that Domain is paying and would have preferred it to be a scrip offer rather than cash, it acknowledges that the deal is in line with its marketplace strategy and expects it to boost its Agent Solutions business. The Domain share price is fetching $3.98 today.

Ramsay Health Care Limited (ASX: RHC)

Another note out of Citi reveals that its analysts have retained their buy rating but trimmed their price target slightly on this private hospital operator’s shares to $74.00. Citi suspects that Ramsay’s recent acquisitions have been holding its shares back given the high costs it has been paying. Nevertheless, with Ramsay’s earnings on the brink of normalising again after the pandemic, Citi sees enough value in them to maintain its buy rating. The Ramsay share price is trading at $64.67 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Why Allkem, Iluka, Pendal, and Sayona Mining shares are charging higher
• ASX lithium shares set to deliver next positive surprise to investors
• Why Air NZ, Bank of Queensland, Domain, and Perpetual shares are dropping
• ASX 200 (ASX:XJO): Perpetual makes Pendal offer, Iluka hits record high
• 5 things to watch on the ASX 200 on Monday

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 recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

Investors don’t need to panic when a market downturn hits. It’s important to figure out the best strategy for navigating a rough patch. As always, there will be winners and losers in this volatile period.

You can transform your long-term performance by adopting winning strategies and avoiding losing ones right now. Here’s how.

Winner 1: Investors with “dry powder”

It hurts to look at your portfolio value during a market downturn, but it’s not time to bury your head in the sand. Corrections are huge opportunities for investors who have cash to deploy, known as “dry powder” in the financial industry. Stocks have become much cheaper relative to the underlying companies’ sales, cash flows, and dividends. The downturn is like stocks have gone on sale, and it’s the best time to buy.

Of course, it takes a combination of luck and foresight to develop that pile of cash. Most asset managers keep some portion of their portfolio in cash. The amount of cash tends to rise and fall with the manager’s opinion on investment viability. Warren Buffett is holding an enormous amount of cash at Berkshire Hathaway because he determined stocks have been overvalued relative to their fundamentals.

Investors shouldn’t have been out of the market completely going into this latest downturn. However, those who kept themselves from getting caught up in the fervor should have some cash on hand to take advantage of more attractive pricing.

Winner 2: Dividend stocks

Dividend stocks aren’t immune from market downturns, but they tend to shine relative to other equities during tough times. Corrections and bear markets are signals that investor risk appetite has declined. Uncertain conditions cause capital to flow away from stocks and into other asset classes such as bonds and cash.

Those same forces are at work within the stock market as well. Growth stocks tend to take a beating, while dividend stocks hold up a bit better. Companies that pay dividends also tend to have more stable cash flows, and they often avoid catastrophic disruptions during economic turmoil. Importantly, dividend stocks still provide returns in the form of quarterly distributions, even if their share prices are temporarily down.

This is playing out as we speak. The Vanguard High Yield Dividend ETF is up about 2% year to date, while major stock indexes slumped. Growth stock valuations got a bit out of control, and investors are seeking safety as pricing falls back toward historically normal levels.

Data by YCharts.

Loser 1: Investors who sell

The only people who truly lose during a stock market downturn are investors who sell their stocks. Gains and losses are unrealized until they’re locked in through a sale. Any position with positive returns can still swing to a loss until that position is closed — the same is true for positions that are down.

In the history of the stock market, every single downturn has just been a temporary divergence from a long-term growth trend. If you sell during a downturn, you’re buying high and selling low. You’re losing your chance to capitalize on growth when the market recovers in the future.

But investors sell for all sorts of reasons. Some stocks are sold to cover distributions from retirement accounts. Sometimes, circumstances change in a financial plan, and assets have to be liquidated to meet cash needs. Or a portfolio has to be rebalanced to achieve a better mix of growth and volatility.

Too often, however, investors make fear-based decisions and exit the market due to the risk that losses grow even steeper. Selling in a downturn can help you avoid the impact of a full-blown bear market if it goes that far, but that’s nothing compared to the opportunity cost of missing out on all future gains.

The best investors understand volatility is inevitable, and they don’t throw out their whole investment plan when the market hits a rough patch.

Loser 2: Growth stocks

Growth stocks are usually great tools for long-term returns, but they come with extra volatility. They outperform when the market is up, and they underperform when the market falls.

Stock prices are theoretically based on expected future cash flows, and growth stocks have more uncertainty around those cash flows. It requires a bigger leap of faith to forecast the future earnings of a company that’s rapidly expanding but doesn’t produce any net profits today. The rewards are great if the story comes to fruition, but the risks are greater too.

Valuations peak at the top of market cycles, and growth stocks tend to have the most aggressive valuations when investor risk appetite is high. That leaves more room to fall when the market drops.

This doesn’t mean investors should avoid growth stocks. Instead, it suggests they shouldn’t be overexposed to this category, and they need to make sure they’re ready to ride out volatility when it inevitably comes up.

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

The post 2 winners and 2 losers during stock market downturns appeared first on The Motley Fool Australia.

More reading

• What are the tailwinds behind BHP shares in April?
• Why is the Newcrest (ASX:NCM) share price having such a strong start to the week?
• Here are the 5 worst-performing ASX ETFs over the March quarter
• Why Allkem, Iluka, Pendal, and Sayona Mining shares are charging higher
• ASX lithium shares set to deliver next positive surprise to investors

Ryan Downie has no position in any of the stocks mentioned. The Motley Fool owns and recommends Berkshire Hathaway (B shares) and Vanguard High Dividend Yield ETF. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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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Shares in Aussie mining giant BHP Group Ltd (ASX: BHP) are rangebound today, trading 0.27% higher at $52.53 apiece at the time of writing.

The world’s largest mining company has seen a 26% jump in its share price this year to date. It’s also up almost 5% over the previous month.

What’s the outlook BHP shares?

Analyst sentiment is fairly widespread, according to Bloomberg data. The list of buy calls has dropped substantially these past few months with 52% of analysts now neutral on the stock.

Currently, 32% of coverage advocates to buy – down from nearly 70% in November 2021 – while the remaining 16% of analysts urge their clients to sell BHP shares, Bloomberg data shows.

According to JP Morgan, BHP offers a “low risk jurisdictional exposure [with] a competitive advantage” to diversified mining, especially those seeking to keep it local in Australia.

“BHP is the world’s largest mining company, with key exposures to iron ore (50-60% 2022 earnings), copper (20-25%) and met [metallurgical] coal (15-20%),” the broker said in a recent note.

“BHP is [also] headquartered in Australia, and >80% of its earnings exposure is generated from operations in Australia. Australia offers a stable operating environment, clear fiscal regime and well established rule of law,” it added.

Other investigations reveal that BHP’s underlying markets are each roaring in 2022 with iron ore and copper, in particular, each posting strong rallies.

With tightening geopolitics and mounting inflation pressures, these aren’t the only commodity markets charging north in 2022.

Meanwhile, analysts at Macquarie, Barrenjoey, BMO Capital Markets, and Morgans are constructive on BHP and rate it a buy right now.

According to Bloomberg data, the consensus price target on BHP is $48 per share at the moment, well below the current share price.

BHP shares have spiked 15% in the last 12 months and are now up 5.57% in just the previous week of trade.

The post What are the tailwinds behind BHP shares in April? appeared first on The Motley Fool Australia.

More reading

• Here’s why the performance of ASX 200 shares is smashing the S&P 500
• The BHP share price went up over 10% in March
• The ASX 200 just had its longest winning streak since 2017. What’s doing?
• Why BHP, Core Lithium, Tabcorp, and Talga shares are racing higher
• ASX 200 (ASX:XJO) midday update: Tabcorp demerger update, BHP higher, Block tumbles

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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The Newcrest Mining Ltd (ASX: NCM) share price is in the green on Monday despite no news having been released by the company.

Additionally, the price of gold has been slipping, creating more mystery around Newcrest’s gains.

At the time of writing, the Newcrest share price is $27.20, 1% higher than its previous close.

However, earlier today, it was trading for as much as $27.43 – representing a 1.85% rise.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 0.27% on Monday.

Let’s look at what’s going on with the market and the gold miner’s shares today.

What’s driving the Newcrest share price on Monday?

The Newcrest share price is outperforming the broader market on Monday despite the price of gold slipping.

As The Motley Fool’s James Mickleboro reported this morning, the golden metal’s spot price slipped 1.6% on Friday.

Its slip was driven by United States jobs data, which found the country’s employment rose by 431,000 in March while its unemployment rate dropped to 3.6%.

Right now, June gold futures are trading at US$1,923.80 an ounce, according to data from CNBC.

Still, the Newcrest share price isn’t alone in being in the green on Monday. It’s joined by fellow ASX 200 gold miner Northern Star Resources Ltd (ASX: NST).

Right now, the Northern Star share price is 1.48% higher than it was at Friday’s close.

Additionally, both the S&P/ASX 200 Materials Index (ASX: XMJ) and the S&P/ASX 200 Resources Index (ASX: XJR) are outperforming today. They’re currently up 0.87% and 0.88%, respectively.

The last time the market heard from Newcrest was back in early March. Then, the company announced the completion of its acquisition of Pretium Resources Inc.

Today’s gains included, the Newcrest share price is 10% higher than it was at the start of 2022. It has also gained 6% since this time last year.

The post Why is the Newcrest (ASX:NCM) share price having such a strong start to the week? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• The Newcrest (ASX:NCM) dividend is hitting bank accounts today. Here’s the lowdown
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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Since we are now in April, the first quarter of 2022 has officially wrapped up. That means it’s a good time to take stock of the year to date and take note of the winners and losers that are starting to emerge in 2022. So today, let’s check out which ASX exchange-traded funds (ETFs) have proven to be most disappointing over the year so far.

The 5 worst-performing ASX ETFs of the March quarter

BetaShares Crypto Innovators ETF (ASX: CRYP)

This ETF is a relatively new one on the ASX, having only started life in November last year. CRYP is designed to track a basket of companies that all deal with cryptocurrencies and the emerging crypto economy. Some of CRYP’s top holdings include Riot Blockchain, Coinbase Global, and Silvergate Capital Corp. This ETF has not had a pleasant few months though. Over the quarter ending 31 March, CRYP units lost 18.3% of their value.

BetaShares Cloud Computing ETF (ASX: CLDD)

Another relative newbie to the ASX, the BetaShares Cloud Computing ETF is our next fund. CLDD began trading in February 2021. It’s a fund designed to give investors access to the theme of cloud computing. Most of its holdings are US companies, which include Dropbox, Akamai Technologies, and Workday. Sadly, CLDD has also had a rough run of late, with this ETF reporting a loss of 18.6% over the quarter just passed.

BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

We can see a theme emerging with this list today as we look at another tech-based ETF in RBTZ. The name says it all with this fund, which has companies hailing from the US, Japan, and Switzerland, amongst others. With RBTZ, you’ll find companies like NVIDIA Corp, Yaskawa Electric, and Upstart Holdings here. But the tech selloffs of the last few months have not spared this ETF. During the March quarter, we saw RBTZ units shed a nasty 20.68% of their value.

ETFS Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS)

This ETF is a little different. It tracks the Nasdaq 100 Index, but not in the same way an index fund does. Rather, it offers geared (or leveraged) exposure to the Nasdaq. In other words, it’s designed to use borrowings to magnify the gains of the index. But, as we see now, gearing also amplifies losses. We can see this in action by looking at the Nasdaq 100 March quarter loss. While the index lost a tad over 10% over the three months to 31 March, LNAS units lost a hefty 22.58% of their value.

ETFS S&P Biotech ETF (ASX: CURE)

This biotech-themed ETF may be having a strong day so far today (up 2.73% at the time of writing) but, unfortunately, that doesn’t change CURE’s dreadful March quarter. In fact, this ETF takes out the top spot for the worst-performing ETFs over the quarter just gone. The fund returned a loss of 24.8% between New Year’s Day and 31 March. CURE tracks a portfolio of biotech shares, mostly hailing from the US. Some of its top holdings include Moderna, Ocugen, and Iovance Biothera.

The post Here are the 5 worst-performing ASX ETFs over the March quarter appeared first on The Motley Fool Australia.

More reading

• 3 very exciting ETFs for ASX investors this month
• Crypto and cybersecurity: 2 exciting ETFs for ASX investors
• Here are 2 top ETFs for ASX investors next week
• Here are 4 popular ETFs for ASX investors to check out
• 3 ETFs for ASX investors to check out next week

Motley Fool contributor Sebastian Bowen owns Coinbase Global, Inc., Dropbox, Inc., and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Betashares Crypto Innovators ETF, Coinbase Global, Inc., and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. and Silvergate Capital Corporation. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decent gain. At the time of writing, the benchmark index is up 0.4% to 7,524.7 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

Allkem Ltd (ASX: AKE)

The Allkem share price is up over 8% to $13.45. Investors have been buying this lithium miner’s shares after brokers responded positively to its lithium pricing update from the end of last week. The team at Morgans, for example, retained their add rating and lifted their price target to $15.24.

Iluka Resources Limited (ASX: ILU)

The Iluka share price has charged 5% higher to $12.08. Investors have been buying this mineral sands and rare earths company’s shares after it announced a final investment decision on phase three of the Eneabba Rare Earths Refinery. Iluka will push ahead with phase three after its feasibility study demonstrated solid economics and significant potential for growth.

Pendal Group Ltd (ASX: PDL)

The Pendal share price has jumped 19% to $5.33. The catalyst for this has been news that rival Perpetual Limited (ASX: PPT) has made a takeover offer. According to the release, Perpetual has put forward a $6.23 per share scrip and cash takeover proposal to acquire the fund manager. This values Pendal at approximately $2.4 billion.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price has rocketed 26% higher to 31.5 cents. This morning the lithium developer revealed that lithium hydroxide made from the company’s Authier spodumene product has been found to be the same quality as commercial battery-grade material. The company is working with Novonix Ltd (ASX: NVX) on the conversion of its spodumene product.

The post Why Allkem, Iluka, Pendal, and Sayona Mining shares are charging higher appeared first on The Motley Fool Australia.

More reading

• ASX lithium shares set to deliver next positive surprise to investors
• Here’s why the Sayona (ASX:SYA) share price is surging 34% on Monday
• ASX 200 (ASX:XJO): Perpetual makes Pendal offer, Iluka hits record high
• Pendal (ASX:PDL) share price rockets 23% on $2.4b takeover approach
• Iluka (ASX:ILU) share price jumps 8% to record high on major rare earths news

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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ASX lithium shares have delivered stellar gains on the back of the bullish outlook for battery materials. But the sector could have another surprise up its sleeve to entice investors.

As lithium prices continue to break records, Credit Suisse believes some could launch capital management initiatives as the next catalyst for their share prices.

Such a move could provide ASX lithium shares with another tailwind after their strong performances. The Allkem Ltd (ASX: AKE) share price, Pilbara Minerals Ltd (ASX: PLS) share price and Global Lithium Resources Ltd (ASX: GL1) share price are just some examples of miners that have rocketed over the past several weeks.

Price guidance fires up ASX lithium shares

Allkem’s latest announcement on lithium carbonate and spodumene concentrate pricing is adding to the bullish outlook for the sector.

The company expects the price for lithium carbonate to reach around US$35,000 per tonne free on board in the June quarter. It adds that its spodumene is set to reach approximately US$5,000 per tonne in the same period.

The price for guidance for lithium carbonate is 26% ahead of Credit Suisse’s expectations. The broker was also expecting spodumene prices of around US$4,000 a tonne.

Earnings upgrades powering the sector

“The pricing backdrop continues to outpace CS/consensus anticipation,” said the broker. “We have increased price forecasts for CY22/23 to better reflect the market dynamics.”

As a result of the upgrade, Credit Suisse’s 12-month price target for the Allkem share price jumps by 60 cents a share to $15.30.

Its target for the Pilbara share price increases by a more impressive 70 cents a share to $3.90.

Capital returns could recharge ASX lithium shares

But the good times for ASX lithium shares may not stop there. The way lithium prices are going, one shouldn’t be surprised if we see further valuation upgrades if the commodity keeps running higher.

What’s more, the amount of cash these miners will be generating could allow them to undertake capital management initiatives. And Allkem could be the first out of the blocks.

“We see scope for dividends or buybacks to be announced within the next year, perhaps as early as the AKE Strategy Day next week,” said Credit Suisse.

“Forecast ~19% [free cash flow] for AKE, and net cash position of ~US$1.1bn by June FY23 (even after growth capex) indicate ample room for cash returns to shareholders to begin, we think.”

The broker is recommending both the Allkem share price and Pilbara Minerals share price as “outperform”.

The post ASX lithium shares set to deliver next positive surprise to investors appeared first on The Motley Fool Australia.

More reading

• 5 ASX mining shares rocking all-time highs on Friday
• Own Pilbara Minerals shares? Here’s why the CEO is so bullish on lithium prices
• Why Allkem, Argosy Minerals, Firefinch, and Tabcorp shares are charging higher
• Allkem (ASX:AKE) share price leaps 6% following lithium pricing update
• ASX 200 (ASX:XJO) midday update: Allkem jumps on lithium pricing update: Domain to acquire Realbase

Motley Fool contributor Brendon Lau owns Orocobre 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decent gain. At the time of writing, the benchmark index is up 0.3% to 7,517.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Air New Zealand Limited (ASX: AIZ)

The Air New Zealand share price has crashed 20% to 92 cents. The catalyst for this decline has been the airline operator’s shares trading ex-rights this morning. Last week Air New Zealand announced a $1.2 billion 2 for 1 rights offer. This meant that shareholders owning shares prior to the open, will now have the right to pick up new shares at a huge discount of 49 Australian cents.

Bank of Queensland Limited (ASX: BOQ)

The Bank of Queensland share price is down 3% to $8.26. This follows a couple of recent broker downgrades. On Friday, the team at Macquarie downgraded its shares to a neutral rating from outperform. This morning, Ord Minnett followed suit and downgraded the bank’s shares to a hold rating.

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price is down 2% to $3.93. This has been driven by the completion of the institutional component of the property listings company’s entitlement offer. Domain raised $162 million from institutional investors at a 5.2% discount of $3.80 per new share. These funds, together with an accompanying share purchase plan, are being used to acquire Realbase for $180 million. It is a leading campaign management technology platform in the Australia and New Zealand region.

Perpetual Limited (ASX: PPT)

The Perpetual share price has fallen 6% to $32.19. Investors have responded negatively to news that Perpetual has tabled a takeover offer for rival Pendal Group Ltd (ASX: PDL). According to the release, Perpetual has offered the equivalent of a $6.23 per share in scrip and cash to acquire Pendal. This values Pendal at $2.4 billion.

The post Why Air NZ, Bank of Queensland, Domain, and Perpetual shares are dropping appeared first on The Motley Fool Australia.

More reading

• Perpetual (ASX:PPT) share price halted amid Pendal takeover bid
• ASX 200 (ASX:XJO): Perpetual makes Pendal offer, Iluka hits record high
• Pendal (ASX:PDL) share price rockets 23% on $2.4b takeover approach
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to sell next week

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

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It’s a good day to own Liontown Resources Limited (ASX: LTR) stock as the company’s share price launches higher to sit among the S&P/ASX 200 Index (ASX: XJO)’s top performers.

Interestingly, there’s been no news from the battery metals exploration and development company today.

However, the S&P/ASX 200 Resources Index (ASX: XJR) is among the market’s leading sectors.  

At the time of writing, the Liontown share price is $2.15, 10.54% higher than its previous close.

However, that’s dipped from its intraday — and all-time — high of $2.19, which represented a 12.3% gain.

Let’s take a closer look at how Liontown’s stock is performing in comparison to the broader market on Monday.

Liontown share price hits new all-time high

The Liontown share price is surging higher as the ASX 200 records a strong start to the week.

Right now, the index is up 0.33% while all but two of its sectors trade in the green.

Perhaps unsurprisingly, Liontown’s stomping ground – the ASX 200 resource sector – is among the better performers, recording a 0.87% gain.

It’s closely followed by the S&P/ASX 200 Materials Index (ASX: XMJ)’s with a 0.81% gain.

Only one ASX 200 share is outperforming Liontown on Monday. The Pendal Group Ltd (ASX: PDL) share price is launching 20% on news it’s received a $2.4 billion takeover offer.

Other ASX 200 lithium shares in the green today include Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS). They’re currently up 8.15% and 6.27% respectively.

Today’s gains included, the Liontown share price is 27% higher than it was at the start of 2022. It has also gained 440% since this time last year.

The post The Liontown (ASX:LTR) share price is surging 11% on Monday appeared first on The Motley Fool Australia.

More reading

• Lithium boom: Top broker tips Liontown (ASX:LTR) share price to jump 60%
• Experts name 3 of the best ASX lithium stocks to buy now
• These 3 ASX 200 shares are topping the volume charts this Monday
• Why Block, Core Lithium, Liontown, and Qube shares are rising
• ‘Exciting’ results: Here’s why the Liontown (ASX:LTR) share price is climbing 6% today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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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‘s (NASDAQ: TSLA) stock price shot up 8% on March 28 after the company announced its intentions to pursue a stock split. Nothing is set in stone yet, but many investors are sitting on the edge of their seats trying to figure out their next move. If Tesla’s potential stock split is anything like its previous split in August 2020, it could mean a victory for investors. 

Tesla’s four-figure share price may be too expensive for some investors right now, and that’s where fractional shares may come in. We’ll dive into how a stock split works and the power of fractional shares in your portfolio. 

Tesla’s stock split intentions

Although full details about Tesla’s stock split haven’t been disclosed, here’s some information that’s on the table so far:

• Tesla filed a Form 8-K on March 28. This form is filed with the Securities and Exchange Commission (SEC) to alert investors about major announcements that could impact the company. 
• The electric-car maker plans to ask shareholders for permission to move forward with a stock split at the 2022 Annual Meeting of Stockholders. Last year’s meeting took place in October. 
• The stock split would be delivered to shareholders after final board approval. 

Although stock splits tend to stir up a lot of excitement in the marketplace, it’s really not a big deal when you look at the full picture. A stock split in itself doesn’t make the company more valuable. The intrinsic value of the shares will remain the same. But for investors without huge amounts to invest, a lower per-share price can help them get whole shares if they want.

Fractional shares can help you get a bite of Tesla 

If you’re bullish on Tesla, you don’t have to wait until the company makes a final decision about its stock split before you load up on shares. You can get a piece of the action now with fractional shares. This provides a convenient way to gain access to your favorite stocks without breaking the bank. 

Tesla is trading around $1,000 per share. If you don’t want to dole out $1,000 for a whole share, you can set aside a smaller amount (say, $100) to add Tesla to your portfolio. Fractional shares allow you choose a dollar amount that you feel most comfortable with to gain access to a portion of the company’s profits. 

Although fractional shares lower the barrier to entry, you should do your research before buying any stock. Here are some questions to consider before you give Tesla your hard-earned money:

• Does Tesla have the potential to continue its growth streak over the next five to 10 years? 
• Can the company stay ahead of electric vehicle competition? 
• Could Tesla’s expenses hinder the company’s growth capabilities? 
• What external factors could impact Tesla’s performance? 

The impact of buying Tesla before the potential stock split 

While everyone waits to hear more about the split logistics for Tesla’s stock, you may be able to make moves now that could position you to have a whole share after the stock split.

Let’s say Tesla moves forward with a 2-for-1 stock split. If you’re an investor before the cut-off date, you’ll end up doubling your shares of Tesla after the stock split. 

Suppose you have a 1/2 fractional share of Tesla in your account. If a 2-for-1 stock split happened, you would have a whole share after the stock split. 

Don’t base your buy decision on stock splits

Stock splits can make a company look attractive to many investors, but it’s only a cosmetic change for the company’s stock. Therefore, you shouldn’t base your investment decisions solely on a company’s plans to do a stock split.

However, if you’ve done your research and think Tesla is a buy, it wouldn’t hurt to start buying fractional shares. It’s a great way to diversify your portfolio and invest in the stock at a dollar amount that works best for your finances. You’ll also be positioned to receive extra shares in your account if the shareholders and board approve a stock split. 

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

The post Should you buy fractional shares of Tesla before the potential stock split? appeared first on The Motley Fool Australia.

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Charlene Rhinehart, CPA owns Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends 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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