Tag: Motley Fool

On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week deep in the red. The benchmark index fell 0.55% to 7,773.3 points.

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

ASX 200 expected to rebound

The Australian share market looks set to push higher on Monday following a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.5% higher. On Friday on Wall Street, the Dow Jones was up 0.8%, the S&P 500 rose 1.1%, and the Nasdaq climbed 1.25%.

Oil prices rise

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices rose again on Friday night. According to Bloomberg, the WTI crude oil price was up 0.4% to US$88.91 a barrel and the Brent crude oil price was up 0.6% to US$91.17 a barrel. Rising tensions in the Middle East gave oil prices another boost.

Buy Life360 shares

Life360 Inc (ASX: 360) shares could be great value following recent weakness in the tech sector according to analysts at Goldman Sachs. This morning, the broker has reiterated its buy rating and $14.20 price target on the location technology company’s shares. Commenting on its advertising plans, the broker said: “In our view little value is being imputed for ads given that the core subscription business remains undervalued, therefore we see valuation upside on successful execution.”

Gold price jumps

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a great start to the week after the gold price jumped again on Friday. According to CNBC, the spot gold price was up 1.6% to US$2,345.4 an ounce. The precious metal hit a new record high and its third consecutive week of gains. This was driven by U.S. interest rate cut bets, speculative buying, and central bank purchases.

Magellan rated neutral

Goldman Sachs has been looking at the latest funds under management (FUM) update from Magellan Financial Group Ltd (ASX: MFG). In response, the broker has retained its neutral rating with an improved price target of $9.10. It said: “We note that FUM is tracking ahead of GSe primarily as a result of markets with flows broadly in line with expectations for the quarter. While flows were generally tracking better over Jan/Feb, March saw an increase in institutional outflows at $0.5bn for the month.”

The post 5 things to watch no the ASX 200 on Monday appeared first on The Motley Fool Australia.

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More reading

• Here’s how the ASX 200 market sectors stacked up last week
• 1 ASX 200 stock I’m buying hand over fist despite the market’s pessimism
• Here are the top 10 ASX 200 shares today
• Uh oh! Are Woodside shares facing a ‘dividend cliff’?
• 3 ASX 200 tech shares to buy now with less than $2,000

Motley Fool contributor James Mickleboro has positions in Life360 and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. 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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If you are on the lookout for some new additions to your portfolio, then the ASX 200 shares listed below could be worth considering.

They have both been named as favoured shares by Bell Potter for the month of April. These are the shares that the broker believes “offer attractive risk-adjusted returns over the long term.”

Bell Potter also notes that when choosing its picks it considers the current macro-economic backdrop and investment environment, focusing on quality companies with proven track records, capable management, and competitive advantages.

You can read about the first two ASX 200 shares on the list here. Let’s now take a look at two more of the broker’s top picks:

Mineral Resources Ltd (ASX: MIN)

Bell Potter is a big fan of this mining and mining services company.

It likes Mineral Resources due to the earnings diversification it has from its focus on lithium, energy, and iron ore, as well as mining services. It explains:

In contrast to its peers, MIN completes everything from engineering, to construction, to all aspects of operations in-house. Our Buy view is underpinned by MIN’s earnings diversification, strong insider ownership, clearly articulated strategies, expertise in contracting and internal growth options at Onslow as well as potential lithium expansions including into downstream. All up, MIN offers diversified exposure to steady income streams from the contracting business and market-driven commodity exposure coupled with earnings derived from both lithium and iron ore.

Bell Potter currently has a buy rating and $75.00 price target on the company’s shares.

ResMed Inc. (ASX: RMD)

Another ASX 200 share that Bell Potter is feeling very bullish about is sleep disorder treatment company ResMed.

It believes ResMed has a long runway for growth thanks to its under penetrated market, increasing demand, and a major product recall from its main rival. Bell Potter explains:

The market for OSA and chronic obstructive pulmonary disease (COPD) remains under penetrated, and we expect industry volume growth to continue in the 6-8% range for the foreseeable future. In this regard, the competitive dynamics are very much in favour of RMD due to the Philips recall and improving semiconductor availability. […] Furthermore, ResMed is well-positioned to build on its dominant share even after Philips returns to the global market, with the launch of its latest continuous positive airway pressure (CPAP) device, the Air Sense 11.

The broker currently has a buy rating and $34.00 price target on ResMed’s shares.

The post Bell Potter names more of the best ASX 200 shares to buy appeared first on The Motley Fool Australia.

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More reading

• 5 ASX 200 shares for trying to build wealth after 50
• Are your big ASX 200 mining dividends in for a chop?
• Got $5,000? 5 ASX shares to buy for lasting wealth
• Why Cettire, Harvey Norman, Orora, and ResMed shares are sinking today
• Here’s why I think the Resmed share price should be 18% higher

Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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ASX 200 utilities shares led the market sectors last week, with a 1.74% gain over the four trading days.

The S&P/ASX 200 Index (ASX: XJO) lost 1.62% over the week to finish at 7,773.3 points on Friday.

The benchmark index once again reset its all-time high last week, touching 7,910.5 points on Tuesday.

As my colleague Seb explained, investors were feeling optimistic given that inflation is moderating without a significant uptick in unemployment, opening the door to the possibility of lower interest rates later this year.

Only two of the 11 market sectors finished the week in the green.

Let’s review.

Utilities shares led the ASX sectors last week

Among the largest of the 22 ASX 200 utilities companies listed on the market, the stand-out for share price growth this week was AGL Energy Limited (ASX: AGL).

AGL shares rose by 2.51% to finish at $8.56 on Friday.

APA Group (ASX: APA) shares rose 1.67% over the four trading days to finish at $8.53.

The Origin Energy Ltd (ASX: ORG) share price lifted 1.41% to $9.28.

None of these companies had any official news out last week.

ASX utilities stocks outshone energy shares by only 0.24% this week, so let’s take a look at how the big energy players did as well.

Ampol Ltd (ASX: ALD) shares led the ASX 200 energy large-caps with a 4.01% lift to $41.28 on Friday.

Santos Ltd (ASX: STO) shares also had a good week, up 2.52% to $7.93 apiece.

The Woodside Energy Group Ltd (ASX: WDS) share price gained 0.59% to close at $30.60 on Friday, and investors were paid their dividends on Thursday.

It was quiet on the news front for these energy stocks as well.

There was no official news from any of them. However, here at the Fool, my colleague Bernd was pondering whether now is the time to invest in ASX 200 energy shares.

We also got a look at the Federal Government’s new 5-year commodity price forecasts for oil and gas.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the four trading days:

S&P/ASX 200 market sector	Change last week
Utilities (ASX: XUJ)	1.74%
Energy (ASX: XEJ)	1.5%
Materials (ASX: XMJ)	(0.53%)
Industrials (ASX: XNJ)	(1.37%)
Financials (ASX: XFJ)	(1.45%)
Consumer Staples (ASX: XSJ)	(2.03%)
Communication (ASX: XTJ)	(2.15%)
Healthcare (ASX: XHJ)	(2.82%)
Consumer Discretionary (ASX: XDJ)	(2.94%)
A-REIT (ASX: XPJ)	(4%)
Information Technology (ASX: XIJ)	(4.73%)

The post Here’s how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

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More reading

• 1 ASX 200 stock I’m buying hand over fist despite the market’s pessimism
• Does a 6.5% yield with relative stability sound good? Consider this ASX energy giant
• Here are the top 10 ASX 200 shares today
• Uh oh! Are Woodside shares facing a ‘dividend cliff’?
• Why is the ASX 200 ending the week with a whimper?

Motley Fool contributor Bronwyn Allen has positions in Woodside Energy Group. 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 positions in and has recommended Apa 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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Are you on the lookout for some ASX dividend shares to buy when the market reopens? If you are, read on because there are three quality options listed below that have recently been named as buys and tipped to offer attractive dividend yields.

Here’s what analysts are saying about these income options:

Coles Group Ltd (ASX: COL)

Analysts at Morgans think that Coles would be a top ASX dividend share to buy when the market reopens. It is of course one of Australia’s largest supermarket operators. In addition, it has a large liquor store network under brands including Vintage Cellars and Liquorland.

Morgans was impressed with its performance in the first half, noting that its earnings came in ahead of expectations. It also highlights that its sales growth early in the second half has been stronger than its arch rival.

In light of this, it is now forecasting fully franked dividends of 66 cents per share in FY 2024 and 69 cents per share in FY 2025. Based on the current Coles share price of $16.39, this implies yields of approximately 4% and 4.2%, respectively.

Morgans has an add rating and $18.70 price target on its shares.

Orora Ltd (ASX: ORA)

Goldman Sachs continues to believe that this packaging company could be an ASX dividend share to buy despite its bleak update last week.

While its disappointing update has led to earnings estimates downgrades and a trimmed valuation, the broker still expects some big (and growing) dividend yields in the coming years.

Goldman is forecasting dividends per share of 12 cents in FY 2024, 13 cents in FY 2025, and 15 cents in FY 2026. Based on the current Orora share price of $2.21, this will mean yields of 5.4%, 5.9%, and 6.8%, respectively.

The broker has a buy rating and $3.00 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share that Goldman Sachs is a fan of is Australia’s largest telco, Telstra.

It likes the company due to its low risk earnings and dividend growth over the coming years.

The broker expects this to underpin fully franked dividends of 18 cents per share in FY 2024 and 19 cents per share in FY 2025. Based on the current Telstra share price of $3.83, this equates to yields of 4.7% and 5%, respectively.

Goldman has a buy rating and $4.55 price target on Telstra’s shares.

The post Buy Telstra and these ASX dividend shares next week appeared first on The Motley Fool Australia.

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More reading

• 3 ‘forever’ ASX dividend shares to build your wealth
• These ASX 200 shares could rise 20% to 50%
• 2 ASX dividend shares to beat inflation
• Own Telstra shares? Here’s why the ASX 200 telco just backed this AI startup
• Bell Potter names the best ASX 200 shares to buy in April

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 Coles Group and Telstra Group. The Motley Fool Australia has recommended 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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It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BHP Group Ltd (ASX: BHP)

According to a note out of Goldman Sachs, its analysts have retained their buy rating on this mining giant’s shares with a slightly reduced price target of $49.20. Goldman Sachs has been running the rule over the mining sector ahead of the release of quarterly updates this month. It believes BHP will deliver a reasonably solid quarterly update. For example, the broker expects copper and metallurgical coal production to increase quarter on quarter. But the main reasons the broker is positive are BHP’s attractive valuation, its optionality with a +US$20 billion copper pipeline and strong production growth, and its robust free cash flow generation. The BHP share price was trading at $44.35 on Friday.

Mesoblast Ltd (ASX: MSB)

A note out of Bell Potter reveals that its analysts have retained their speculative buy rating on this cellular medicines developer’s shares with an increased price target of $1.40. Bell Potter points out that the FDA has informed Mesoblast that available clinical data from a Phase 3 study for children with steroid refractory acute graft versus host disease appears sufficient to support a resubmission of the Biological Licence Application for its Remestemcel product. It believes the timing of the correspondence is no coincidence. The broker highlights that there is refreshed leadership at the newly formed Office of Therapeutic Products at the FDA. In light of this, its analysts have renewed confidence for a prospective approval of Remestemcel later this year. It also feels that a first approval may represent a gateway to a series of label expansions in the ensuing period. The Mesoblast share price was fetching 86.5 cents at the end of the week.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at UBS have retained their buy rating on this wine giant’s shares with an improved price target of $15.25. This follows confirmation that the Chinese Ministry of Commerce (MOFCOM) is removing tariffs from Australian wine imports into China. According to the note, UBS was pleased with the news and believes that Treasury Wine’s shares now deserve to trade on higher earnings multiples. Especially given that this news increases its addressable market. Its analysts have also lifted their earnings estimates to reflect the news and higher margin assumptions for its premium wine. The Treasury Wine share price ended the week at $12.86.

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

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More reading

• Why is everyone talking about Mesoblast shares?
• Why the Mesoblast share price can rise another 60%
• Brokers name 3 ASX shares to buy now
• 2 ASX 200 retirement shares to buy now
• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. 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 recommended Treasury Wine Estates. 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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The Vanguard Australian Shares Index ETF (ASX: VAS) is a popular investment on the ASX. How popular? Well, it’s only the largest index fund by funds under management, with more than $14.7 billion invested as of 29 February.

But while many ASX investors own VAS units as at least a part of their ASX portfolio, many others shun this exchange-traded fund (ETF). One of the most oft-cited reasons why is its perceived weight towards bank shares and mining stocks. You’ll often hear things like ‘VAS is just a banks and miners fund’ from this ETF’s detractors.

So today, let’s investigate whether this popular index fund is just a big bet on banks and miners.

To start with, let’s go over how the Vanguard Australian Shares ETF works. It is an index fund that mirrors the S&P/ASX 300 Index (ASX: XKO), so it’s exposed to the 300 largest shares on the ASX by market capitalisation.

How does the Vanguard Australian Shares ETF work?

This might make the ETF sound inherently diversified already. After all, the largest 300 shares on the ASX include companies ranging from Coles Group Ltd (ASX: COL) and Telstra Group Ltd (ASX: TLS) to JB Hi-Fi Ltd (ASX: JBH) and Xero Ltd (ASX: XRO). It’s not all banks and miners.

But there’s a catch. Although VAS’s ASX portfolio does include 300 different companies, not all of them are treated equally. In fact, none of them are.

Each one is assigned a weighting (a percentage of VAS’s overall portfolio) based on its size, or market cap. This means that the largest shares have a heavier weight (and thus more influence on the ETF’s returns) than the smaller ones in the Vanguard Australian Shares ETF’s portfolio.

As it happens, the big banks and miners are some of the largest companies in Australia. Because of this, they do have more influence on VAS’s ASX performance than other sectors. How much more?

Well, let’s look at the numbers.

As of 29 February, the 15 largest shares in VAS’ portfolio were as follows:

1. BHP Group Ltd (ASX: BHP)
2. Commonwealth Bank of Australia (ASX: CBA)
3. CSL Ltd (ASX: CSL)
4. National Australia Bank Ltd (ASX: NAB)
5. Westpac Banking Corp (ASX: WBC)
6. ANZ Group Holdings Ltd (ASX: ANZ)
7. Wesfarmers Ltd (ASX: WES)
8. Macquarie Group Ltd (ASX: MQG)
9. Woodside Energy Group Ltd (ASX: WDS)
10. Goodman Group (ASX: GMG)
11. Rio Tinto Ltd (ASX: RIO)
12. Telstra Group Ltd (ASX: TLS)
13. Fortescue Ltd (ASX: FMG)
14. Transurban Group (ASX: TCL)
15. Woolworths Group Ltd (ASX: WOW)

If you see what I see, you’d agree that there are a lot of banks and miners there.

Is VAS just a big ASX bet on banks and miners?

In fact, the big four banks make up four of the six largest companies on the ASX. And the largest – BHP – is a miner.

Amongst these 15 stocks, I count five banks (including Macquarie, which is at least partially a bank) and four miners (including oil and gas stock Woodside).

But it gets worse for fans of diversification. BHP alone takes up a whopping 9.44% of VAS’s entire portfolio, while CBA is at 8.27%. This means for every $100 you invest in VAS units on the ASX, $9.44 will end up in BHP shares and another $8.27 in CBA stock.

Putting those five banks together, we get to a total weighted portfolio position of approximately 23.28%. So almost a quarter of a VAS investment is going into five ASX banks.

What about the miners? Well, adding up BHP, Rio, Fortescue and Woodside’s weightings, we get to an approximate 15.69%.

All up, out of a $100 VAS investment, $38.97 will go to BHP, CBA, NAB, Westpac, ANZ, Macquarie, Woodside, Rio Tinto, or Fortescue shares.

Out of the entire VAS portfolio, 29.7% of its weighted holdings are in financial shares, with another 22.4% in materials (mining) stocks. That’s a combined weighting of 52.1% to banks and miners.

Now, to be clear, the ASX’s banks and miners are world-class. Some investors may not have a problem with this allocation (and the high levels of dividend income it can facilitate). But it’s hard to argue that an ASX investment in VAS units is anything other than a big bet on the banks and mining stocks.

Take that how you will.

The post Is the Vanguard Australian Shares ETF (VAS) just a big ASX bet on banks and miners? appeared first on The Motley Fool Australia.

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More reading

• How is the Vanguard Australian Shares ETF (VAS) falling almost 1% today?
• 3 excellent ASX ETFs for smart investors in April
• Want the latest dividend from the Vanguard Australia Shares ETF (VAS)? Here’s what you have to do
• How much would I need invested in the Vanguard Australian Shares ETF (VAS) for a comfortable retirement?
• Here are the next distribution dates for your Vanguard ETFs

Motley Fool contributor Sebastian Bowen has positions in CSL, National Australia Bank, Telstra Group, Wesfarmers and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, Macquarie Group, Transurban Group, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended Coles Group, Macquarie Group, Telstra Group, Wesfarmers, and Xero. The Motley Fool Australia has recommended CSL, Goodman Group, and Jb Hi-Fi. 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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Why else would an investor buy an ASX growth stock if not for market-beating potential? After all, it’s all in the name. Since most growth stocks either pay insignificant dividends or none at all, the returns you get from them typically come in the form of share price growth – hence the name.

I don’t own too many ASX shares you could classify as ‘growth stocks’ in my own ASX portfolio. But I do own one that I think has the potential to beat the S&P/ASX 200 Index (ASX: XJO) handily over the next few years and even decades.

It’s the BetaShares Nasdaq 100 ETF (ASX: NDQ). Now this investment isn’t technically an ASX share. Rather it is an exchange-traded fund (ETF) and index fund that holds 100 of the largest shares on the Nasdaq stock exchange.

Why do I think this ASX growth stock will beat the ASX 200?

The Nasdaq is one of the two major stock exchanges in the United States, the other being the New York Stock Exchange. It is known for being the ‘cooler’ of the two, housing almost all of the major US tech stocks.

Its top holdings are the ‘magnificent seven’ stocks we’ve all become increasingly familiar with over the past decade – the likes of Apple, Microsoft, Amazon, Alphabet, NVIDIA, Meta Platforms and Tesla.

But NDQ also houses many other famous growth stocks, including PayPal, Netflix, Adobe, Costco, Booking Holdings, Starbucks and Airbnb.

These names are obviously some of the highest-quality and most dominant companies (and growth stocks) in the world.

But this ETF that holds them has a long track record of delivering performances that shred those that the ASX has delivered.

Over the past five years (as of 29 February), NDQ units have returned an average of 22.98% per annum (including dividends). The index that this fund tracks has averaged a return of 21.82% per annum over the past ten years.

In contrast, an ASX 200 index fund in the iShares Core S&P/ASX 200 ETF (ASX: IOZ) has returned an average of 8.52% per annum over the past five years, and 7.79% over the past ten.

Now past performances are never a guarantee of future returns. But given the innovative and disruptive nature of the world-class growth stocks in the Nasdaq 100 ETF compared to the ASX, I’d be willing to bet that this outperformance continues well into the future.

The post I think this ASX growth stock has market-beating potential appeared first on The Motley Fool Australia.

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More reading

• 3 of the best ASX ETFs to buy now
• Which ASX ETFs give Aussie investors access to US stocks?
• How much would I have now if I’d invested $10,000 in the BetaShares Nasdaq 100 ETF (NDQ) a year ago?
• Buy and hold these ASX ETFs until 2034
• 5 ASX ETFs to buy and hold for 10 years

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Adobe, Airbnb, Alphabet, Amazon, Apple, Betashares Nasdaq 100 ETF – Currency Hedged, Costco Wholesale, Meta Platforms, Microsoft, Starbucks, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Airbnb, Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Booking Holdings, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, PayPal, Starbucks, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short March 2024 $67.50 calls on PayPal. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Adobe, Airbnb, Alphabet, Amazon, Apple, Betashares Nasdaq 100 ETF – Currency Hedged, Booking Holdings, Meta Platforms, Netflix, Nvidia, PayPal, and Starbucks. 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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The S&P/ASX 200 Index (ASX: XJO) stock Johns Lyng Group Ltd (ASX: JLG) has been my most frequent investment so far in 2024.

I took advantage of the Johns Lyng share price dip — which you can see in the graph below — after the company reported its earnings results in February.  

One of my main investment strategies is to buy growing businesses with compelling long-term futures when the share price has fallen.

I like it when the market offers a business at a cheaper price. It’s just like loading up at the supermarket when our favourite products go on special – the product is the same, but the value is better.

I wouldn’t buy something just because it has fallen. A business that can grow its earnings is appealing because of the lower price/earnings (P/E) ratio. I’m going to talk about three reasons why I think the ASX 200 stock can keep growing profit and why I have invested multiple times in 2024.

Solid core growth

Johns Lyng prides itself on rebuilding and restoring various properties and continues after damage caused by insured events, including impact, weather, and fire.

No business is guaranteed to grow its profit every year, but Johns Lyng is doing a great job at continually growing the core operations’ earnings.

In the company’s FY24 first-half result, it reported that its insurance building and restoration services (IB & RS) revenue rose 13.7% to $426.1 million, and the IB & RS ‘business as usual’ (BaU) earnings before interest, tax, depreciation and amortisation (EBITDA) grew 28.1% to $55 million.

During HY24, the ASX 200 stock secured new contract wins with Tower Ltd (ASX: TWR), Safety Culture Care and RAA, along with contract extensions with Hollard and Suncorp Group Ltd (ASX: SUN).

Johns Lyng managing director Scott Didier said:

Our IB&RS BaU work constitutes the cornerstone of JLG’s earnings. With an annuity style profile, these earnings instil a confidence in our sustained revenue streams, and we anticipate substantial growth as we continue to enhance our market presence and capitalise on our diversified service portfolio, notably within our burgeoning strata business.

Expanding operations

The company continues to expand its footprint in Australia and the United States, which I think can help it increase earnings in the long term.

For example, it announced a couple of months ago that it had entered into an agreement with Allstate, which is one of the largest insurance companies in the US.

The ASX 200 stock has joined its emergency response and mitigation panel. There are 16 million Allstate policyholders throughout the US, and it covers the provision of “emergency response make-safe and water mitigation.”

In Australia, the ASX 200 stock is making acquisitions in strata management and essential home services (such as gas, fire, and electrical compliance and safety checks), unlocking additional and diversified earnings.

The company’s catastrophe response earnings fell in HY24, but that’s understandable – catastrophes do not occur like clockwork. There seems to be a growing number of expensive storms, which may mean more work for Johns Lyng in the future.   

Future international growth?

There’s no guarantee that the ASX 200 stock will expand beyond the countries it’s currently in. Its relatively recent move into New Zealand is beneficial for its total addressable market.

The US is a huge market and represents a very large opportunity for the company to tap into for years to come.

I’m particularly intrigued by management’s comments that may indicate further geographic expansion in the future.

Johns Lyng Group Australia CEO Nick Carnell had this to say at the time of the Tower agreement win:

We are delighted to work with one of New Zealand’s premier insurance brands and this is a further demonstration that our business model can be implemented seamlessly across the Tasman and beyond.

John Lyng’s interest in growing into the US and New Zealand gives me hope the ASX 200 stock could expand into other countries, such as Canada, in the future.

The post 1 ASX 200 stock I’m buying hand over fist despite the market’s pessimism appeared first on The Motley Fool Australia.

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More reading

• The best ASX shares to invest $10,000 in right now
• Here are the top 10 ASX 200 shares today
• Why is the ASX 200 ending the week with a whimper?
• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Tristan Harrison 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. The Motley Fool Australia has recommended Johns Lyng 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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Stock market crashes can be harrowing, but they can also be a good time to buy ASX shares that may be trading at great value.

Sometimes, an unexpected event can occur that causes investors to become fearful. In recent times, we’ve seen a pandemic cause a bear market, while rampant inflation has resulted in a number of sell-offs over the last couple of years.

We don’t know when the next bear market, crash or correction will occur, but if or when one does, I’ll have my eyes on the following businesses.

Centuria Capital Group (ASX: CNI)

This ASX share is a funds management outfit focused on property. As we can see on the chart below, the business is capable of experiencing large volatility during market gyrations.

When a share price falls heavily, there is potential for good returns if it recovers. For example, if a share price falls 33% from $1.50 to $1, going back to just $1.33 would be a rise of 33% from the low.

Centuria has an impressive property portfolio. It includes Australia’s largest pure-play industrial real estate investment trust (REIT), which benefits from strong rental growth due to tenant demand.

The business has a significant property development pipeline that can unlock further rental profits and hopefully grow Centuria’s underlying value.

If the Centuria share price were to fall in an ASX share market crash, I’d be very likely to buy some shares again.  

Nick Scali Limited (ASX: NCK)

Nick Scali is a fairly large furniture retailer in Australia with its Nick Scali and Plush furniture stores.

The Nick Scali share price has recovered impressively from the lows seen in 2023 and 2022 (as we can see below). I’d happily buy some Nick Scali shares at a lower price if an opportunity presented itself.

It’s understandable why a discretionary ASX share can fall hard in a bear market. Investors could be worried that households may close their wallets if the economy worsens.

However, I view discretionary retailers as attractive in a recession because downturns don’t last forever. A sell-off can be a great opportunity if the weak conditions are only temporary. We just don’t know when things will improve.

In my eyes, Nick Scali is an effective retailer with great management. The company has one of the highest returns on equity (ROE) out of all the ASX shares on the market.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is another ASX retail share. It sells affordable jewellery with the target market being younger shoppers.

As the chart above shows, the Lovisa share price has been very volatile over the last few years. We don’t know when future volatility will occur, but I’ll definitely buy more Lovisa shares and add to my position if it experiences a significant decline.

The company earns good margins and it is rapidly rolling out stores across the world.

It’s the global expansion progress that makes me excited about this ASX share. During the six months of the FY24 first half, Lovisa added another 53 net new stores, taking the total to 854. The store growth helped net profit after tax (NPAT) grow by 12% in the result.

At the end of HY24, it had 175 stores in Australia, but it has only just expanded to several other countries with much bigger populations than Australia, such as Mexico, Canada, Italy, Spain, Vietnam, and China.

I think the ASX share can grow its store count and profit considerably over the next few years.

The post 3 compelling ASX shares I’d buy if the ASX crashes again appeared first on The Motley Fool Australia.

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If you’re looking for an effortless way to invest your hard-earned money, then exchange-traded funds (ETFs) could be the answer.

That’s because they provide investors with access to a large number of shares in one investment. This arguably makes them a great option if you don’t like stock picking.

But which ASX ETFs should investors look at buying when the market reopens?

Listed below are four excellent ASX ETFs that could be worth getting better acquainted with this month. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF could be a top ASX ETF to buy. Especially if you’re feeling positive on the long-term outlook of the Asian economy. That’s because this ETF gives investors easy access to the tigers (best tech stocks) in the region. This means you’ll be investing in companies such as e-commerce giant Alibaba, search engine leader Baidu, iPhone manufacturer Taiwan Semiconductor Manufacturing Company, Temu owner, Pinduoduo, and WeChat owner Tencent.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF that could be a top option for investors is the BetaShares Global Cybersecurity ETF. As its name suggests, this ETF provides investors with access to the cybersecurity sector, which has been tipped to grow strongly over the coming decades as cybercrime becomes even more prevalent. This bodes well for the companies included in the fund, such as Accenture, Cisco, Crowdstrike, and Palo Alto Networks.

Betashares Global Uranium ETF (ASX: URNM)

A third ASX ETF to look at is the Betashares Global Uranium ETF. As you might have guessed from its name, this fund provides exposure to a portfolio of leading companies in the global uranium industry. And with nuclear power increasingly being accepted as a safe, reliable, low-carbon energy source, demand for uranium is expected to increase materially in the future as the world decarbonises. This bodes well for the companies held by the fund. This includes locally listed uranium developers Boss Energy Ltd (ASX: BOE) and Paladin Energy Ltd (ASX: PDN).

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

A final ASX ETF for investors to consider buying is the ETFS Battery Tech & Lithium ETF. Much like the Betashares Global Uranium ETF, it looks well-placed to benefit from the decarbonisation megatrend. That’s because it gives investors easy access to companies throughout the lithium cycle. Among its holdings are miners Mineral Resources Limited (ASX: MIN) and Pilbara Minerals Ltd (ASX: PLS), and auto manufacturers Nissan, Renault, and Tesla.

The post 4 ASX ETFs to supercharge your returns in 2024 and beyond appeared first on The Motley Fool Australia.

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More reading

• Is the Betashares Global Cybersecurity ETF (HACK) a good long-term investment?
• How much would I have now if I’d invested $10,000 in Betashares Global Uranium ETF (URNM) a year ago?
• 1 under-the-radar ASX growth stock to consider buying now
• 2 exciting ASX tech ETFs to buy in April
• Which ASX ETFs give Aussie investors access to US stocks?

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 Accenture Plc, Baidu, BetaShares Global Cybersecurity ETF, Cisco Systems, CrowdStrike, Global X Battery Tech & Lithium ETF, Palo Alto Networks, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and has recommended the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Betashares Capital – Asia Technology Tigers Etf, Betashares Global Uranium Etf, CrowdStrike, and Global X Battery Tech & Lithium ETF. 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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