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The Qube Holdings Ltd (ASX: QUB) share price has started the week positively.

In morning trade, the logistics facilities company’s shares are up 3% to $3.10.

Why is the Qube share price rising today?

The catalyst for the rise in the Qube share price today has been the release of a positive announcement this morning.

According to the release, following a strong performance in the first half of FY 2022 and the completion of the Moorebank Logistics Park transaction, Qube will return up to $400 million of capital to shareholders over the remainder of FY 2022.

The company will do this via an off-market buyback program conducted via a tender process that aims to complete in May.

Management commentary

Qube’s Managing Director, Paul Digney, said “The completion of the sale of Moorebank Logistics Park, coupled with Qube’s strong financial performance in achieving record underlying earnings (NPATA) in FY21 and H1 FY22, have contributed to a strong capital position, allowing us to announce this off-market Buy-Back.”

Qube’s Chairman, Allan Davies, revealed that the buyback program was judged to be the best way to return funds to shareholders.

He explained: “The Board has carefully considered how best to return capital to shareholders and we believe that the off-market Buy-Back announced today is the most effective method to return significant value to all our shareholders and optimise our capital structure at this time.”

“It enables a higher number of Qube shares to be bought back in a shorter timeframe and it reduces our share count faster than an on-market buy-back of Qube shares. In turn, a lower capital base and share count supports Qube’s future earnings per share and dividends per share, all things being equal,” Davies added.

What’s next?

Qube advised that it will repurchase shares under the buyback at a discount of between 5% and 14% to the volume weighted average price (VWAP) of the Qube share price for the five trading days up to and including the closing date of 13 May.

The buyback price will comprise a capital component of $1.61 per share and a fully franked deemed dividend equal to the buyback price less the $1.61 per share.

The post Qube (ASX:QUB) share price rises amid $400m off-market buyback appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares we’re holding for both reopening and higher interest rates: expert
• Qube (ASX:QUB) share price rises on ‘strong result’
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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

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The S&P/ASX 200 Index (ASX: XJO) put in a strong showing last week, closing up 2.1%. That leaves the ASX 200 down around 2% in 2022 so far.

But not all ASX 200 shares are created equal.

Commodity and energy shares have tended to outperform this year amid soaring prices. Meanwhile, many formerly high-flying ASX 200 shares in the tech space have been pummelled as investors mull a future with significantly higher interest rates.

This trend has seen the S&P/ASX 200 Energy Index (ASX: XEJ) soar 17.4% year-to-date, while the S&P/ASX All Technology Index (ASX: XTX) has tanked 19.0%.

So, is it time to reduce exposure to commodity and energy stocks and buy the dip in ASX 200 tech shares?

Not according to Australian market strategist at Saxo Markets Jessica Amir.

Fundies likely to rebalance exposures to ASX 200 shares

“Portfolio rebalancing from now to the end of quarter is likely to take place,” Amir said.

Portfolio rebalancing is when fund managers bring their asset allocations back into alignment with their fund’s investment strategies.

Why is that important if you’re investing in ASX 200 shares?

Amir explained:

Commodity darlings that have gone up the most this year, are likely to see some profit taking/selling. And some managers could also be forced to top up (buy) downward facing tech stocks.

Indeed, fintech company Zip Co Ltd (ASX: Z1P), down 63.1% year-to-date, gained 9.5% in last week’s trading.

So, what does this mean for the outlook for sector specific ASX 200 shares?

According to Amir:

Be mindful of end of quarter disillusioned gains, [which are] likely to be short lived. Remember earnings growth drives share price growth. So you should consider companies in growth industries, that are growing their market share and earnings.

If you see profit taking/selling in commodity stocks, you could have your chance to buy companies like Whitehaven Coal Ltd (ASX: WHC) and Woodside Petroleum Ltd (ASX: WPL). Both are trading up 50% this quarter, and operate on low price to earnings (P/E) ratios, meaning they are ‘cheaper’ to buy in comparison to how much ‘earnings’ they make/pay.

Amir concluded, “You could pick up some low hanging fruit end of quarter.”

How have these energy shares been tracking?

The Woodside share price has been charging higher for most of the New Year, up more than 41% on the back of soaring crude oil and gas prices.

Our other leading ASX 200 share, Whitehaven Coal, has done even better. Whitehaven’s share price has rocketed 52% this year as thermal coal hit all-time highs.

And, according to Amir, it will be worth keeping an eye on both these ASX 200 shares to watch for any profit taking in the weeks ahead.

The post 2 leading ASX 200 shares to watch as fundies rebalance portfolios appeared first on The Motley Fool Australia.

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• Oil price could hit US$200 per barrel this year: expert
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• These ASX 200 shares are topping the volume charts on Friday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. 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.

Perhaps the Warren Buffett way really is better.

That’s the conclusion you could draw given the unexpected recent gains in one of Berkshire Hathaway‘s (NYSE: BRK.A) (NYSE: BRK.B) more uninteresting holdings, anyway. American Express (NYSE: AXP) shares are up almost 30% in the past 12 months, priced within sight of new 52-week highs, while the S&P 500 (SNPINDEX: ^GSPC) is up a more modest 11% in the same timeframe. Better still, American Express is up a hefty 137% for the past five years, surprising nearly everyone with sizable gains from a seemingly stodgy company.

What did Buffett and his acolytes know that lots of other people didn’t?

American Express provides real value

American Express is not technically a credit card company. Rather, it provides charge cards, or a means of making purchases without the use of cash with the expectation that the charge will be paid in full at the end of the billing period. The company handles a few billion consumer transactions every year, each one of which generates a few cents’ worth of revenue for every dollar spent. American Express collected $25.7 billion of this sort of revenue in 2021.

However, for all intents and purposes American Express is a credit card company, and more importantly, a credit card lender. AmEx generated $8.8 billion worth of interest-based revenue last year, which only cost it $1.3 billion. All told, the company netted $7.7 billion in interest revenue in 2021. 

The numbers, however, still don’t answer the question about why the shares of this organization operating in the highly competitive credit card industry are doing so well.

The differentiator is the perks-and-benefits ecosystem American Express has built for cardholders.

Most credit card issuers tack on niceties like cash-back rewards, points toward travel miles, and the like to their service. Few of them do it as well as AmEx does, though. Points are awarded for everyday things like shopping for groceries and eating at restaurants, and cash is given back for purchases made at department stores. Certain cards even offer credit toward ride-hailing services and free checked bags when flying.

And these aren’t insignificant rewards. For instance, holders of American Express’s Blue Cash Preferred card will get back 6% on as much as $6,000 of their supermarket purchases in the span of one year. The perks are so sweet, in fact, that many consumers are willing to pay sizable annual fees just to use American Express cards. Of AmEx’s 2021 revenue of $42.4 billion, $5.2 billion of it came from membership fees alone. That’s a high-margin $5.2 billion worth of sales, too. Costs linked to managing its rewards programs, member services, advertising, and marketing are covered by the more typical credit card revenue sources like transaction fees and interest charges.

In simpler terms, American Express is very, very good at adding real value for its cardholders. 

The proverbial proof of the pudding lies in the numbers. Last year’s 17% uptick in net revenue isn’t just a post-pandemic fluke. At the company’s recent Investor Day event, American Express said it’s targeting revenue growth of between 18% and 20% this year, and aims to generate annual revenue growth of more than 10% in 2024 and beyond. Earnings growth should roll in somewhere in the mid-teens at that sales growth pace. Given everything we know about the company, those results certainly seem achievable.

And perhaps here’s the part Buffett and Berkshire’s stock-pickers like best: Past and projected profit growth is supporting similar dividend growth. American Express just upped its 2022 quarterly dividend payment (again) to $0.52 per share, up 20% from last year’s quarterly payout, and a return to the rate of increase before the pandemic took hold.

Buffett’s patience is paying off

A perfect stock? No, there’s no such thing. Every stock has risk, and since people run companies, mistakes happen and inefficiencies exist. Then there are the unexpected hurdles that up-end earnings, like pandemics and recessions. Geopolitical tensions don’t help matters either.

American Express, however, is one of those solid stocks that’s easily overlooked while hunting for more exciting investment prospects. That’s a big mistake…a mistake that Warren Buffett didn’t make. He’s held a stake in the company for a couple of decades now, and rightly so. You’d do well to follow his lead. 

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

The post This unstoppable Warren Buffett stock has proven it’s a monster appeared first on The Motley Fool Australia.

More reading

• Could the CSR (ASX:CSR) share price be set for a boost?
• How is the Vanguard International Shares ETF (ASX:VGS) performing in the 2022 volatility?
• Brokers: Buy these 2 underrated ASX dividend shares
• Magellan (ASX:MFG) share price higher despite Hamish Douglass resignation news
• 2 high-yield ASX dividend shares that brokers love

American Express is an advertising partner of The Ascent, a Motley Fool company. James Brumley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended 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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Analysts believe the CSR Ltd (ASX: CSR) share price could benefit from a boost of residential housing work following the east coasts floods.

Shares in the building products company are currently swapping hands at $5.98 apiece, a 0.5% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up around the same so far today.

Let’s take a look at what could impact the CSR share price.

More housing construction

Citi analysts believe the recent floods in NSW and Queensland will add $2 billion worth of residential work for the home building industry including CSR, The Australian reported.

Fletcher Building Limited (ASX: FBU) is another company the broker believes could benefit from this work.

The broker has a $6.63 price target on CSR shares, 10.5% higher than its current price.

In a broker note, the analysts said:

Post recent insurer disclosures, we update our potential flood impact view. We estimate an additional about $2bn worth of residential housing work has been added or about 10 per cent to the already-elevated backlog.

Despite lead indicators such as house price and approvals slowing, we estimate the current backlog will take longer to clear than the market is expecting.

As my Foolish colleague Tristan reported recently, CSR will pay a 7% dividend yield in FY22. The company declared a fully-franked dividend of 13.5 cents per share in its FY22 half-year results.

JP Morgan analysts also recently placed an overweight rating on CSR with a $6.15 price target.

CSR share price snapshot

The CSR share price has gained 8% in the past year and about 2% year to date.

In the past month, the company’s shares have gained more than 4%.

For perspective, the benchmark ASX index has returned around 9.6% over the past year.

CSR has a market capitalisation of around $2.9 billion based on today’s share price.

The post Could the CSR (ASX:CSR) share price be set for a boost? appeared first on The Motley Fool Australia.

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• The CSR (ASX:CSR) share price has a dividend yield of 7%. Does this make it a buy?
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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 Vanguard MSCI Index International Shares ETF (ASX: VGS) has been riding the wave of volatility in 2022, just like most other investments. But how has the VGS exchange-traded fund (ETF) performed?

Since the start of this year, there has been investor concern about the Russian invasion of Ukraine, worries about inflation, and what this might mean for interest rates.

Some ASX shares have fallen heavily in the first two and a half months of 2022. For example, the Xero Limited (ASX: XRO) share price has sunk 30%, the Zip Co Ltd (ASX: Z1P) share price has dropped 63%, and the Pointsbet Holdings Ltd (ASX: PBH) share price has fallen 45%.

Vanguard International Shares ETF performance in 2022

At the time of writing, the VGS ETF has fallen by 10.11% since the start of the calendar year.

This is a bigger fall than the S&P/ASX 200 Index (ASX: XJO), which has only dropped by around 2%.

But, there are other large ETFs on the ASX that have fallen more than the VGS ETF.

The Betashares Nasdaq 100 ETF (ASX: NDQ) has fallen more than 16% since the start of the year.

Meanwhile, Vanguard US Total Market Shares Index ETF (ASX: VTS) has dropped by 10.2% in 2022 so far.

What’s influencing the VGS ETF performance?

There have been declines in several sectors in 2022, particularly technology. Plenty of global ETFs on the ASX provide exposure to the big tech names.

The biggest positions in the NDQ ETF, VTS ETF and VGS ETF portfolios are the big US tech names like Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). An ETF’s overall return simply tracks the combined return of the underlying positions. As the biggest holdings in some ETFs, the giant US tech stocks have the biggest influence on the returns of those ETFs.

The US share market has a heavy tech focus, so the ETFs that are more weighted to the names like Tesla (NASDAQ: TSLA) – down over 24% this year to date – have seen a more significant decline. The NASDAQ has high exposure to tech names.

However, the Vanguard MSCI Index International Shares ETF also offers broad diversification to other sectors.

Diversification

The VGS ETF is invested in around 1,500 businesses from around the world. Many countries are represented in the holdings, including the United States, Japan, the United Kingdom, Canada, France, Switzerland, Germany, the Netherlands, Sweden, and so on.

It also offers exposure to some businesses in sectors like financials and energy that have seen a rise in the share price in 2022.

The HSBC (LSE: HSBA) share price is up more than 5% since the start of the year, while the Wells Fargo (NYSE: WFC) share price is up over 1%.

In energy, the Shell (LSE: SHEL) share price has gone up 14.5%, while the ConocoPhillips (NYSE: COP) share price has jumped 35% in 2022. The oil price has risen amid the war in Ukraine.

Vanguard MSCI Index International Shares ETF management fee

Vanguard is proud of its ability to offer investors investment products with very low management fees.

The VGS ETF has an annual management fee of just 0.18%.

The post How is the Vanguard International Shares ETF (ASX:VGS) performing in the 2022 volatility? appeared first on The Motley Fool Australia.

More reading

• 3 highly rated ETFs for ASX investors to check out this week
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Amazon, Apple, BETANASDAQ ETF UNITS, Microsoft, Tesla, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended HSBC Holdings and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Amazon, Apple, and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX dividend shares have the ability to boost the amount of investment income that an investor receives.

There are some companies which have boards that want to pay a fairly high level of profit out to shareholders each year.

These are two of those dividend payers, which brokers like:

Metcash Limited (ASX: MTS)

Metcash has three different divisions.

It supplies food to independent supermarkets, such as IGA.

Metcash supplies a wide array of independent liquor, including Cellarbrations, The Bottle-O, IGA Liquor, Duncans, Thirsty Camel, Big Bargain and Porters.

The ASX dividend share also has a hardware division which includes Mitre 10, Home Timber & Hardware and Total Tools.

Metcash has committed to paying out a certain level of profit. Its target dividend payout ratio is around 70% of underlying net profit after tax (NPAT).

The result for the six months to October 2021 saw Metcash achieve revenue growth of 1.3% to $7.2 billion. Group underlying earnings before interest and tax (EBIT) grew by 13.9% to $231.2 million. But within the total, food EBIT fell 7.6% to $95.2 million, liquor EBIT rose 10.5% to $44.3 million and hardware EBIT surged 53.3% to $98.9 million. Hardware is now the biggest profit generator for the business.

It’s currently rated as a buy by Credit Suisse. Based on the dividend estimate for FY22, the projected grossed-up dividend yield is 6.9%.

Bank of Queensland Limited (ASX: BOQ)

BOQ is one of the challenger banks on the ASX. It operates three different brands – BOQ, ME Bank and Virgin Money Australia.

The ASX dividend share is currently working through extracting synergies from the ME Bank acquisition which will increase the profitability of the business. BOQ is now more geographically diverse with the inclusion of ME Bank.

In December, the company reconfirmed its FY22 guidance of at least 2% ‘positive jaws’. It said that growth momentum has continued through the first quarter of FY22, with “strong” application volumes across both housing and business lending portfolios.

However, the bank noted that the industry had experienced net interest margin (NIM) headwinds in the first quarter due to tougher trading conditions, including yield curve volatility, intense price competition, fixed-rate lending and higher liquid asset balances. The ASX dividend share said this will result in a slightly lower FY22 NIM than previously guided.

It’s currently rated as a buy by the broker Morgans, with a price target of $11. Based on the broker’s dividend projection for FY23, BOQ has an estimated forward grossed-up dividend yield of 9.3%.

The post Brokers: Buy these 2 underrated ASX dividend shares appeared first on The Motley Fool Australia.

More reading

• Are Bank of Queensland (ASX:BOQ) shares cheap right now? Read what analysts say
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• Bargain buy? Broker tips Bank of Queensland (ASX:BOQ) share price to rise 37%
• The Bank of Queensland (ASX:BOQ) share price has lost half its value in 15 years. How is the bank’s turnaround strategy going?

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. 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 Magellan Financial Group Ltd (ASX: MFG) share price is edging higher today.

At the time of writing, the struggling fund manager’s shares are up 1.5% to $15.99.

This means the Magellan share price has narrowed its year to date decline to 64%.

What’s going on with Magellan share price?

Investors have been bidding the Magellan share price higher today despite the release of an update on its Founder and ex-Chairman, Hamish Douglass.

In case you weren’t aware, Mr Douglass has been on indefinite leave from the role of Chairman since early in February. This followed a period of intense pressure and focus on both his professional and personal life.

At the time, the Magellan Board advised that they were supportive of Douglass taking the time that he requires to focus on his health and were looking forward to welcoming him back.

However, today’s bombshell announcement reveals that Hamish Douglass will not be returning as a Magellan director. The release advises that with effect from 19 March 2022, Douglass has resigned from the Magellan Board.

And given how the Chairman role and the board generally go hand in hand, this could be a sign that he will not be returning as Chairman in the future. Though, that has not been confirmed.

Magellan advised that Mr Douglass said his resignation as a director of the Magellan Board is due solely to his medical leave of absence. The Board is continuing its search process to appoint an additional independent director.

Why are its shares rising on the news?

Judging by the Magellan share price performance today, it appears as though the market was already anticipating this and had priced it in.

Though, it is also worth noting that Magellan has just launched a major on-market share buyback. This offers some downside protection, with the brokers entrusted to buy shares, Barrenjoey and Ord Minnett, able to take advantage of any selling on the news today.

The post Magellan (ASX:MFG) share price higher despite Hamish Douglass resignation news appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Magellan jumps on buyback news, travel shares take off
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 are a handful of high-yielding ASX dividend shares that brokers love right now.

It’s one thing for a single analyst to like a business. But it’s something else when many analysts all like a company at the same time. It may suggest there is an opportunity there. Or it’s possible that all of those brokers may be wrong with their ‘buy’ ratings.

Whilst interest rates are predicted to go higher, the actual interest rate is still very low which may make high-yield stocks more attractive.

Here are two high-yield ASX dividend shares that are well-liked by brokers:

Whitehaven Coal Ltd (ASX: WHC)

Whitehaven is one of the biggest coal miners in Australia. It currently operates four mines in the Gunnedah Basin of NSW. Four of its mines are: the Maules Creek Mine, the Narrabri Mine, the Tarrawonga Mine, and the Werris Creek Mine.

It’s currently rated as a buy by at least six brokers.

The Whitehaven share price has risen by 45% since the start of 2022. This is on the back of coal prices rising in recent times amid the Russian invasion of Ukraine.

As a resource business, the higher the coal price, the more revenue and profit Whitehaven can generate. That higher profit can then fund higher dividend payments.

Credit Suisse is one of the brokers that rates Whitehaven as a buy, with a price target of $4.70. That suggests a possible upside of close to 20%.

The broker is expecting a much bigger dividend in FY23 from the high-yield ASX dividend share. Credit Suisse is currently expecting a 11.5% yield in FY23.

Telstra Corporation Ltd (ASX: TLS)

Telstra has been one of the largest dividend payers on the ASX over the last 20 years.

The Telstra board has committed to try to pay a dividend of 16 cents per share until it can start growing the dividend.

The company has been working on reducing its cost base, monetising its assets, and growing customer satisfaction under its T22 strategy.

Telstra is now looking towards its T25 strategy. This includes further cost cuts, expansion of 5G coverage, and an aim to grow profit margins.

It has also been making acquisitions to expand and diversify its earnings, such as through its MedicalDirector and Digicel Pacific businesses.

At least four brokers, including Morgan Stanley, are rating Telstra as a buy. The price target on Telstra is $4.60, that’s around 16% higher than where it is now.

Morgan Stanley likes the recent regional mobile network agreement that Telstra signed with TPG Telecom Ltd (ASX: TPG), which adds to Telstra’s earnings and allows Telstra to get access to TPG’s regional spectrum.

The broker is expecting Telstra to pay a grossed-up dividend yield of 5.8% in FY22 and FY23.

The post 2 high-yield ASX dividend shares that brokers love appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 dividend shares analysts are urging income investors to buy
• These ASX 200 shares are topping the volume charts on Friday
• These 3 ASX 200 shares are topping the volume charts this Thursday
• ‘Significant step’: What’s boosting the Telstra share price this week?
• Telstra (ASX:TLS) share price climbs amid rumours the telco plans to take on US giants

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. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation 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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Many high-quality ASX shares have been beaten up in 2022. Are they now opportunities?

Investors have a lot to contend with right now. There’s a war going on in Ukraine. Inflation is high. Interest rates are expected to go higher.

Share prices change all the time. Sometimes valuations can change significantly in a short amount of time. But is it now time to jump on these stocks?

REA Group Limited (ASX: REA)

The REA Group share price has fallen almost 20% in 2022.

REA Group is recovering from the impacts of COVID-19 when property volumes were down. In the first half of FY22, it saw core revenue rise by 37% to $590 million, with core net profit after tax (NPAT) jumping 31% to $226 million. These numbers were achieved despite the lockdowns in Melbourne and Sydney in the first quarter.

The CEO said that the removal of COVID restrictions saw a wave of new listings on realestate.com.au, with sellers making up for the time lost in lockdown and taking advantage of the significant buyer demand. There was also record take-up of its premium listing products in its residential and commercial divisions.

REA Group’s international divisions also performed. REA India saw revenue growth of 125% to $24 million.

In terms of the outlook, the ASX share said that residential property market conditions remain positive. January 2022 national residential new listings were up 14% year on year, with Sydney listings up 19%.

However, the year-on-year growth rate is expected to slow in the second half as the market cycles through very strong listing volumes in the prior period.

Morgan Stanley rates the business as a buy, with a price target of $178. That’s almost 30% higher. It thinks the outlook is still positive for the business.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price has fallen 27% since the start of the year.

Pro Medicus has one of the highest earnings before interest and tax (EBIT) margins on the ASX, with a margin of 65% in the first half of FY22. The medical imaging tech company recently reported a high level of growth as well, with HY22 profit after tax up 52.7% to $20.7 million and the dividend up 42.9%.

The company continues to see larger healthcare groups choose its Visage software to replace legacy picture archiving and communication systems (PACS). One of the more recent wins was with Novant Health, which signed a $40 million, 7-year contract.

The ASX share boasts of its highly scalable offering with a “contained cost base”. The margin continues to grow as its global footprint increases.

It’s looking to extend to new geographical markets and develop the next generation of products.

The company says that its contract pipeline remains healthy across many different market opportunities.

Morgans currently rates the healthcare business as a buy, with a price target of $56.20. That implies a possible upside of more than 20% over the next year. It thinks the market volatility provides investors a good price to invest in Pro Medicus.

The post Experts say it’s time to buy these beaten-up, quality ASX shares appeared first on The Motley Fool Australia.

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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 Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. 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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During all of this ASX share market volatility, investors may be looking for some S&P/ASX 200 Index (ASX: XJO) blue-chip shares that may be better value or could provide some stability.

Experts are always on the lookout for opportunities. Some ASX 200 blue-chip shares have plenty of buy ratings at the moment, including these two:

Goodman Group (ASX: GMG)

Goodman is one of the ASX’s biggest property businesses. It owns, develops, and manages a large global industrial real estate portfolio.

It’s currently rated as a buy by at least four brokers, including Morgan Stanley which has a price target of $27.88 on the business. That implies a potential upside of more than 20% for Goodman.

The Goodman share price has fallen 16% year to date.

But the ASX 200 blue-chip share continues to grow at a double-digit pace.

In Goodman’s FY22 half-year result, it upgraded its full year operating earnings per security (EPS) growth forecast to 20% with a “strong performance from all business segments”. The HY22 result showed operating EPS growth of 27% year on year.

At 31 December 2021, Goodman’s total assets under management (AUM) reached $68.2 billion. It had a portfolio occupancy of 98.4% with like for like net property income growth of 3.4%. Its development work in progress (WIP) was up 51% to $12.7 billion across 81 projects, with a forecast yield on cost of 6.7%.

Management said that it is benefiting from the strength of demand for essential infrastructure for the digital economy.

Bapcor Ltd (ASX: BAP)

Bapcor is a leading auto parts business in Australia and New Zealand. It operates lots of different brands for different parts of the vehicle market.

Some of its brands include: Burson Auto Parts, Precision Automotive Equipment, BNT (NZ), Truckline, WANO, Autobarn, Autopro, Midas, ABS, Shock Shop and Battery Town.

This ASX 200 blue-chip share is rated as a buy by UBS with a price target of $8.10. That implies a possible upside of around 30%.

The broker is expecting a recovery for the business in the second half of FY22, after the first half had plenty of disruptions from lockdowns.

UBS is expecting FY23 net profit after tax (NPAT) to grow, with the Bapcor share price valued at 15x FY23’s estimated earnings.

The company has a plan to grow the business in many ways, including expanding its store network, realising operational efficiencies, expanding its own brand product range, and growing in Asia.

The post 2 ASX 200 blue-chip shares to buy this month: experts appeared first on The Motley Fool Australia.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor. 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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