Tag: Motley Fool

The CSL Limited (ASX: CSL) share price has been somewhat of a lacklustre performer of late, especially when compared to its stellar runs of a few years ago. At the time of writing, CSL shares are going for $269.12 each, up a healthy 2.03% so far today.

However, CSL first crossed this pricing threshold back in November 2019. That means this ASX 200 healthcare giant has essentially been treading water ever since. That’s 2-and-a-half years of waiting that shareholders have had to endure, with only CSL’s sub-1% dividend yield for company.

That contrasts painfully with prior years when CSL shareholders enjoyed double-digit share price growth over 2017, 2018, and 2019.

Not that the recent share price woes are entirely CSL’s fault. It was trading at what was arguably quite a high price-to-earnings (P/E) ratio prior to the COVID-induced crash of 2020. Even today, it commands a solid P/E ratio of more than 36. And the pandemic has hit CSL hard, disrupting its plasma collection businesses around the world.

What’s notable is that CSL has been markedly higher in the past. The company hit more than $336 a share back in early 2020, its current all-time high. And the company’s present 52-week high is at $319.78.

Is 2022 the CSL share price’s $300 year?

So is 2022 the year that CSL crosses the Rubicon and heads back to a share price north of $300?

Well, one broker who thinks it might be CSL’s $300 year is Citi. As we covered yesterday, Citi has just retained its buy rating on CSL shares, replete with a 12-month share price target of $335. That would imply a potential upside of almost 25% on today’s pricing.

Citi reckons CSL’s plasma collections will come roaring back this year, exceeding pre-pandemic levels. This, the broker expects, will result in a “big boost to investor sentiment”.

No doubt shareholders who have been waiting since November 2019 for the CSL share price to keep climbing will be hoping Citi’s predictions are spot on. But we shall have to wait and see, as always.

At the current CSL share price, this ASX 200 healthcare giant has a market capitalisation of $129.6 billion, with a mostly unfranked dividend yield of 0.96%

The post Is the CSL share price heading back over $300 in 2022? appeared first on The Motley Fool Australia.

More reading

• Does the AFIC (ASX:AFI) dividend beat the ASX 200?
• ASX 200 (ASX:XJO) midday update: Magellan jumps on buyback news, travel shares take off
• Why I closed my shares fund then launched a digital assets fund
• 5 things to watch on the ASX 200 on Wednesday
• 3 quality blue chip ASX 200 shares analysts are tipping as buys

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. 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.

from The Motley Fool Australia https://ift.tt/XPZLWR1

There’s no denying ASX mining shares are outstripping most other corners in this edgy market so far in 2022. Plenty of mining names are at the top of the mantlepiece, glittering in green – or gold, copper, ore – whatever they mine in the first place.

The Phosco Ltd (ASX: PHO) share price is one clear example, having surged more than 50% during this week of trading following a company announcement yesterday. Let’s take a closer look.

Why are Phosco shares charging higher?

This ASX mining share is soaring aloft the fledglings found in the rest of the market today, having announced an important update regarding its Chaketma Phosphate Project in Tunisia.

The update comes after the company restarted technical work at the site in early 2022, after maiden estimates were made back in 2012.

Phosco reported an increase in tonnage and confidence of its mineral resources estimate (MRE) at the Kef El Louz (KEL) prospect at the site.

“Independent consultancy Arethuse Geology has estimated a Measured and Indicated Mineral Resources for KEL of 55.5 million tonnes of rock at a grade of 21.2% P2O5 as per JORC (2012) guidelines, above a cut-off of 10% P2O5”, it said.

“This provides a resource base sufficient for the initial 30 years of the mining plan as proposed in the Scoping Study announced 14 August 2012”, it added.

Specifically, the new MRE signifies an increase of 50% or around 18.5 million tonnes (Mt) on the previous maiden estimate.

Investors grabbed ahold of the stock and drove it north in a vertical uptrend, right near its 52-week highs of around 1 month earlier.

Management commentary

Speaking on the announcement, Phosco’s Executive Director, Taz Aldaoud said:

We’re excited to see such a significant step-change at the KEL phosphate prospect. Not only has the size of the resource increased substantially, but equally positive is the enhancement in confidence of the resource thanks to a large conversion of tonnes into the Measured & Indicated category. There’s plenty of upside at this deposit with drilling to date covering just less than half of the surface area of known KEL mineralisation. Work is now underway to deliver an upgrade at the neighbouring GK deposit.

Phosco share price snapshot

In the last 12 months, the Phosco share price has climbed 87% and is now up more than 63% for the year to date.

During the last month, shares soared 43% and are up 74% in the last week of trading.

The post This ASX mining share has surged 50% this week. Here’s why appeared first on The Motley Fool Australia.

More reading

• The Polynovo (ASX:PNV) share price has lost 35% this year. Is now the time to buy?
• Why has the Westpac share price rallied 8% in a week?
• Why are ASX renewable shares struggling in 2022?
• Does the AFIC (ASX:AFI) dividend beat the ASX 200?
• Qantas share price lifts as CEO takes to the skies

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.

from The Motley Fool Australia https://ift.tt/wz1eIKq

The Polynovo Ltd (ASX: PNV) share price has been on a disappointing run over the past few months. The medical device company’s shares have dropped 15% in the past month, and 35% in 2022 alone.

At the time of writing, Polynovo shares have nudged over the $1.00 mark, trading for $1.01, a gain of 0.5%.

What’s happened to Polynovo recently?

In late February, Polynovo released its interim results for FY22, highlighting mostly strong numbers across the board.

Total revenue increased by 41.9% to $18.15 million over the prior corresponding period, underpinned by growth in key markets. This included the United States, up 58% to $14.2 million in sales.

However, on the bottom line, Polynovo achieved a net loss after tax of $1.7 million when not factoring in non-cash items. This consisted of unrealised forex gain/(loss), depreciation & amortisation, and share-based payments.

The overall result fell short of market expectations, leading the company’s shares to fall 3.32% on the day. At the end of that week, its shares had sunk around 14%.

What do the brokers think?

A number of brokers weighed in on the Polynovo share price following the company’s H1 FY22 financial scorecard.

The team at Macquarie cut its 12-month price target for Polynovo shares by 44% to $1.60.

It appears the broker is acknowledging Polynovo is underperforming its expectations for FY22 but predicts the business will make a turnaround. This is in particular for its NovoSorb product which is poised for growth in the medium to long term.

In addition, Wilsons put out a more bearish tone, slashing its outlook by 22% to $1.11. Its analysts believe that the medical company’s shares are overvalued.

Based on the current Polynovo share price, this implies an upside of almost 12%.

Polynovo share price summary

Over the last 12 months, Polynovo shares have continued to decline with a loss of more than 63% in value.

This is a sharp contrast from when its shares hit an all-time high of $3.19 in April 2021 amid positive investor sentiment.

Today, Polynovo shares trade around the $1.00 mark.

The company presides a market capitalisation of roughly $664 million and has approximately 662 million shares on its books.

The post The Polynovo (ASX:PNV) share price has lost 35% this year. Is now the time to buy? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• ASX 200 (ASX:XJO) midday update: Origin’s $250m buyback, Nickel Mines smashed
• Why is the Polynovo (ASX:PNV) share price sinking to a new multi-year low?
• These are the 10 most shorted ASX shares
• ASX 200 (ASX:XJO) midday update: Rio Tinto, South32 storm higher, PointsBet sinks

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended POLYNOVO 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.

from The Motley Fool Australia https://ift.tt/8GOV271

Shares in Westpac Banking Corp (ASX: WBC) are edging forwards today and now trade 0.43% in the green at $23.59.

Westpac shares have staged a remarkable recovery in the past week having bounced off an 8 March low of $21.67. Even better, they have bounced off a low of $20.30 on 31 January.

In fact, Westpac is now leading the other banking majors in 2022 and has a consensus analyst price target of $26.96, according to Bloomberg Intelligence.

What tailwinds are behind Westpac shares?

Looking at the wider sector, ASX financials have clawed back gains in 2022 after whipsawing in gut-wrenching volatility over the past two to three months.

In that time the S&P/ASX 200 Financials Index (ASX: XFJ) has traded as high as 9% and as low as 8% before regaining strength once more.

The trend has looked similar to Australian large caps in the benchmark S&P/ASX 200 Index (ASX: XJO). However, as we’ve entered March, the sector has broken away from the large end of the market.

Westpac itself is now up more than 10% this year to date, and investors continue rallying the Westpac share price ahead of other banking majors at the time of writing.

What the analysts are saying

Much of the sector-specific tailwinds are centred around the debate of inflation and interest rates, according to Bloomberg economist James McIntyre.

Higher inflation is sure to impact household budgets, the economist says, meaning the Reserve Bank of Australia (RBA) will have to tighten its policy “a lot sooner to contain these pressures,” by raising base rates.

Doing so would involve a pull-through into the mortgage and credit markets, McIntyre notes, meaning Aussie banks will see more income fed down into their bottom line as profit and free cash flow.

Fellow economist Leith van Onselen at MB Super suggests that if the discount variable mortgage rate were to rise by 215 basis points, this would translate to an increase in average monthly mortgage payments of 29% from February 2022 levels.

The impact would be felt even more by fixed-rate mortgage holders due for expiry over the next two years, most of whom were underwritten at rates of less than 2.5%, he says.

Analysts at Morgans recently noted that Westpac’s share price looks cheap from what’s on offer, valuing the bank at $29.50.

It also bakes in a nice dividend growth projection of $1.19 per share in FY22 moving up to $1.60 in FY23, a jump of 34% year on year if it comes true.

As such, the macro-level tailwinds that are benefitting the sector appear to be transposing to Westpac’s share price as well, sending it further north.

Westpac is now leading each of the other banking majors in the big four, and is beating two banking/financials-specific ETFs listed on the ASX.

In the last 12 months the Westpac share price has fallen around 5% into the red. But it is up more than 10% this year to date.

The post Why has the Westpac share price rallied 8% in a week? appeared first on The Motley Fool Australia.

More reading

• Own Westpac shares? Here’s why change is afoot
• 2 ASX dividend shares analysts say are buys now
• Why ASX 200 bank shares are storming higher today
• Is the NAB (ASX:NAB) share price a buy? Top broker expects sector-leading earnings growth
• Why this broker has big doubts over Westpac’s (ASX:WBC) cost cutting plans

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

from The Motley Fool Australia https://ift.tt/7cJaPMv

ASX renewable shares have been struggling so far in 2022. Particularly if you compare their performance to some of the leading ASX fossil fuel energy shares.

Now, before we continue, there’s no single clear definition of what constitutes an ASX renewable share.

Traditionally, you’d expect them to belong to companies providing sustainable energy sources outside of fossil fuels. Say solar, wind, hydro, tidal, or geothermal.

But, these days, you could argue that lithium miners producing a material vital to battery power storage count among that group too. But then electric vehicles need nickel and copper too.

So, while there’s merit in that argument, for the purposes of this article, we’ll stick to the traditional definition of ASX renewables shares.

How have these ASX renewable shares performed in 2022?

Contact Energy Ltd (ASX: CEN) has a market cap just north of $6 billion. The New Zealand-based electricity provider operates 11 power stations and produces 80-85% of its electricity from renewable hydro and geothermal stations.

The Contact Energy share price is down around 4.3% so far in 2022.

Fellow ASX renewable share, Mercury NZ Ltd (ASX: MCY) has a market cap of just under $7.2 billion. The company generates more than 15% of New Zealand’s electricity and all that electricity is now generated from renewable sources.

The Mercury NZ share price is down almost 8% year-to-date.

Then there’s small-cap ASX renewable share Genex Power Ltd (ASX: GNX), with a market cap of $197 million. The Aussie-based company is focused on the generating and storing renewable energy, with various solar, hydro, and wind assets.

The Genex Power share price is down 27.5% in the New Year.

How does this compare to ASX fossil fuel shares?

While not all ASX fossil fuel focused shares have shot the lights out this year, many have rocketed higher on the back of soaring prices for everything from coal to oil to gas.

The Woodside Petroleum Ltd (ASX: WPL) share price, as one example, has soared 42% in 2022, with crude oil hitting its highest levels in 14-years following Russia’s invasion of Ukraine and pre-existing supply constraints.

Yancoal Australia Ltd (ASX: YAL) has performed even better, with thermal coal prices breaking all-time highs last month. The Yancoal share price is up 61% this calendar year.

What the experts are saying

Addressing the lagging performance of many ASX renewables shares, RC Global’s chief investment officer Roy Chen said (quoted by The Australian Financial Review):

It’s a combination of some clean energy stocks being driven up the year before, then becoming relatively expensive, while others do have some real issues. But I see the biggest problem being too many of these ETFs, or even active managers in the space, chasing very similar companies. Then when the tide turned, investors deserted the ETFs, causing outflows.

Chen added that while many fossil fuel companies have been waiting to expand their operations, a lot of ASX renewable shares have been spending big to upscale at a time when commodity prices are soaring.

“There are some of these clean energy companies that have issued profit warning after profit warning, and warned profit margins could even turn negative because costs are becoming so much,” he said.

And the outperformance advantage could lie with ASX fossil fuel shares over ASX renewables shares for some time yet.

According to an analyst at Wentworth Williamson, Martin Marais:

With geopolitical issues and an industry that is incapable of rapidly ramping up production after years of underinvestment, it is likely that the supply/demand imbalance may take many months, if not years, to fix. In our opinion, demand is unlikely to fall much while there are big supply issues in terms of new discoveries and bringing extra projects online.

At US$80 per barrel for oil and with higher gas prices, we believe that Australian oil and gas producers present good value at their current prices, and accordingly we have invested a meaningful portion of our fund into our best picks among them.

What’s next for ASX renewables shares?

But don’t count ASX renewables shares out just yet.

According to VanEck Australia senior associate for investments and capital markets Alice Shen (quoted by the AFR):

This trend towards clean energy stocks too will likely gain momentum as energy consumers seek substitutes for fossil fuels and the demand for renewable energy rises to meet climate change carbon emissions targets.

Clean energy assets are typically pro-cyclical and tend to overperform when the economic cycle expands and capital spending on renewable energy increases. We could therefore see clean energy companies are likely to rally in the months ahead as the world seeks cleaner and more reliable supplies of energy.

The post Why are ASX renewable shares struggling in 2022? appeared first on The Motley Fool Australia.

More reading

• Why Chalice Mining, Santos, Yancoal, and Zip shares are dropping
• Why is the crude oil price tumbling and which ASX 200 shares are being impacted?
• Why is the Woodside (ASX:WPL) share price plunging today?
• Why is the Yancoal (ASX:YAL) share price plummeting 17% today?
• ASX 200 (ASX:XJO) midday update: Uniti jumps on takeover speculation, Rio Tinto and Yancoal tumble

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.

from The Motley Fool Australia https://ift.tt/lbpw1XI

When the Australian Foundation Investment Co Ltd (ASX: AFI), or AFIC for short, first opened its doors back in the late 1920s, it had a very potent advantage. If an investor wanted a broad-based, diversified investment in ASX shares, all under a single ticker code, then AFIC was one of the only options available to investors. 

Perhaps unfortunately for this Listed Investment Company (LIC), that is no longer the case in today’s modern investing world. With the rise of the exchange-traded fund (ETF), there are many investors today, inspired by the teachings of great investors like Warren Buffett and the late Jack Bogle, who simply look to index funds to fulfil this role. Why try and compete with the market, when you can just invest in the market, goes the logic. And perhaps fair enough too. If you’ve tried your hand at investing in individual shares yourself, you probably know how difficult it is to beat the market over a long time frame.

But that doesn’t mean AFIC is irrelevant now. After all, on its latest performance data, this LIC has managed to slightly outperform the S&P/ASX 200 Index (ASX: XJO) over the past 5 years. It has returned an average of 10.6% per annum over this period, against the ASX 200’s flat 10%. 

But what of dividends? There might be many investors who choose AFIC as an investment over an ETF because of its history of delivering strong, fully franked dividend income. 

So let’s see how AFIC compares to the ASX 200 in this regard. 

AFIC vs ASX 200: dividend showdown

So AFIC’s last two dividend payments were an interim dividend of 10 cents per share that investors saw last month. And a final dividend of 14 cents per share that was paid out last August. Both dividends were fully franked. Those two dividends give AFIC shares a trailing yield of 2.94% on current pricing. 

Let’s compare that to an ASX 200 ETF like the iShares Core S&P/ASX 200 ETF (ASX: IOZ). IOZ pays out quarterly dividend distributions. Its last four payments total roughly $1.08 in distributions per share. On today’s unit price, that gives this ETF a trailing yield of 3.63%. However, not all shares in the ASX 200 pay fully franked dividends, so this yield only comes partially franked. But even so, it clearly outstrips AFIC.

But a caveat. AFIC is a LIC. That means it can hoard its dividend payments in order to smooth them out over time. In contrast, most ETFs are trust structures, which means they are compelled to pass on any dividend income to their shareholders almost immediately.

That might explain why AFIC was able to keep its dividends at 2018 levels over 2020 and 2021 – both years where many ASX shares were forced to slash their dividends compared to prior years’ levels. On the other hand, we saw IOZ’s distributions fluctuate wildly over the past few years. So AFIC might appeal to some income investors out there for this reason.

But that’s how AFIC as a LIC compares to an ASX 200 ETF in terms of dividend income. 

The post Does the AFIC (ASX:AFI) dividend beat the ASX 200? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Magellan jumps on buyback news, travel shares take off
• Why I closed my shares fund then launched a digital assets fund
• 5 things to watch on the ASX 200 on Wednesday
• Why has the Coles (ASX:COL) share price rallied 7% in a month?
• Why is the Woodside (ASX:WPL) share price plunging today?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

from The Motley Fool Australia https://ift.tt/GeS5w6g

The Qantas Airways Limited (ASX: QAN) share price is taking off amid a positive day for travel shares on the ASX.

Qantas shares are currently swapping hands at $5.06, a 2.43% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is ahead 1.04% at the time of writing.

Let’s take a look at what is happening at Qantas.

International tour

Qantas CEO Alan Joyce and chief financial officer Vanessa Hudson are embarking on an investor tour overseas, The Australian reported.

The executives are holding investor conversations in Los Angeles, New York, and London. This includes presenting at a JP Morgan Industrials conference in New York this week. It’s reported Qantas is hoping to drive up overseas interest in the airline, given that foreign ownership has dropped to 21%.

Qantas recently signed a new sustainable fuel deal to power flights from San Francisco, Los Angeles, and Australia. The airline will use almost 20 million litres of biofuels each year from 2025.

The Qantas share price is not the only ASX travel share on the rise today. Webjet Ltd (ASX: WEB) is 2.09% higher, Flight Centre Travel Group Ltd (ASX: FLT) is up 0.91% while Corporate Travel Management Ltd (ASX: CTD) is currently trading 3.91% higher.

In more positive news for ASX travel companies, the New Zealand government announced today it will be bringing forward the opening of the international border to Australian tourists to 12 April.

And in another show of optimism, Qantas has recently released its fourth A380 from its storage site in the Californian desert. The jumbo planes have been upgraded to include more premium seats, Traveller reported.

As my Foolish colleague Sebastian reported on Monday, Firetrail analyst Sean Drennan believes Qantas shares are a buy. Drennan said:

As the dominant domestic airline, we are confident that Qantas will not only survive the pandemic, but emerge in a much stronger competitive position… There is a huge amount of pent-up demand.

Qantas on the ASX share price recap

The Qantas share price has dropped more than 7% in the past year but is up 1% year to date.

In the past week, the airline’s shares have gained around 12%.

Qantas has a market capitalisation of about $9.6 billion based on its current share price.

The post Qantas share price lifts as CEO takes to the skies appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Magellan jumps on buyback news, travel shares take off
• Qantas (ASX:QAN) share price lifting amid sustainable fuel deal
• Buying Qantas (ASX:QAN) shares is more than a COVID-19 recovery play: expert
• Here’s why ASX 200 travel shares are having another stellar day
• Why Block, Myer, Paladin Energy, and Qantas shares are storming higher

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 Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/uQgU4f2

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

‘Fool\\WordPress\\Widgets\\Content\\CommonFeed->prependFeaturedImage’, 1 => ‘WP_Hook->apply_filters’, 2 => ‘apply_filters(\’fool_common_feed_content\’)’, 3 => ‘Fool\\WordPress\\Widgets\\Content\\CommonFeed->contentFilter’, 4 => ‘WP_Hook->apply_filters’, 5 => ‘apply_filters(\’the_content_feed\’)’, 6 => ‘get_the_content_feed’, 7 => ‘require_once(\’/themes/freesite-2020-theme/feed-rss2.php\’)’, 8 => ‘load_template’, 9 => ‘locate_template’, 10 => ‘Fool\\WordPress\\Widgets\\Content\\CommonFeed::loadTemplateForRss2’, 11 => ‘WP_Hook->apply_filters’, 12 => ‘WP_Hook->do_action’, 13 => ‘do_action(\’do_feed_rss2\’)’, 14 => ‘do_feed’, 15 => ‘require_once(\’wp-includes/template-loader.php\’)’, 16 => ‘require(\’wp-blog-header.php\’)’, ) –>

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

What happened?

Shares of Amazon (NASDAQ: AMZN) were trading up 2.7% as of 1:21 p.m. ET on Tuesday. By comparison, the Nasdaq Composite index was up 1.7%.

While the tech giant’s upward move is coming during a broadly positive day for the markets, a Reuters article suggests that Amazon might be days away from closing its acquisition of the iconic Hollywood film studio MGM.

So what?

Amazon announced its $8.45 billion offer to buy the studio and its catalog of more than 4,000 films, including classic franchises James Bond and The Pink Panther, in May 2021. Amazon received regulatory approval for the deal from the European Union’s antitrust regulator Tuesday. The U.S. Federal Trade Commission is also expected to approve the purchase within days, according to Reuters.

Now what?

MGM’s deep catalog would give Amazon’s Prime Video service a wealth of added content to keep customers engaged, and Prime has already picked up a lot of momentum during the pandemic. The tech juggernaut reported that customers were engaging with Prime’s benefits in record numbers during the fourth quarter. This fall, Amazon will release the highly anticipated original series The Lord of the Rings: The Rings of Power, which could attract more viewers to the service.

All the major streaming video services are competing to secure exclusive rights to content in their efforts to win more subscribers in a market that could hit 1.7 billion users by 2026, according to Digital TV Research. Amazon Prime is expected to rank along with Netflix and Walt Disney as one of the top streaming providers by 2026. Digital TV Research forecasts that Prime Video will have 245 million users by that year, compared to 275 million for Netflix.

Moreover, securing the MGM deal might further justify Amazon’s recent move to raise the monthly cost of Prime by $2 to $14.99.

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

The post Why Amazon stock was outperforming the market today appeared first on The Motley Fool Australia.

More reading

• 5 of the fastest-growing stocks on the planet
• 2 Buffett stocks to buy for the long haul
• Amazon’s putting a bigger focus on grocery this year
• Should you buy Amazon stock now or wait until after the stock split?
• Is Amazon stock a buy now before the 20-for-1 stock split?

John Ballard owns Amazon, Netflix, and Walt Disney. 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, Netflix, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has recommended Amazon, Netflix, and Walt Disney. 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.

from The Motley Fool Australia https://ift.tt/WbDI1eg

Shares in APA Group (ASX: APA) are nudging higher today and now trade 1% in the green at $10.03 apiece.

APA shares have traded sideways for the past two months and haven’t budged since trading restarted in January.

That trend is fairly consistent across the board, but whilst shares are up just 2% in the past 12 months, they have snapped back hard since last October and bounced from a low of $8.21 per share.

After a solid set of interim results, the company has attracted the attention of analysts who are digesting their next moves on the stock.

Are upgrades on the way for APA shares?

According to analysts at JP Morgan, the group’s solid result is “likely to lead to consensus upgrades”. The broker said that APA released a robust set of results, where EBITDA returned to growth and the organic pipeline continued to build out.

These results are sure to weigh in positively on its share price and the rating analysts assign to their valuations, it said.

“APA released solid interim financials with EBITDA growing 4% and tracking ahead of consensus for the year”, the broker said. “We still expect market upgrades due to the result”.

Whilst the interim dividend of 25 cents was “slightly below expectations and below normal payout ranges”, management still affirmed its full-year dividend guidance of 53 cents per share in the report.

“Free cash flow of A$515 million was impressive at an annualised yield of 9%”, the broker added.

Not only that, but APA’s recent closure of baseload plants is likely to be a net positive for gas use in power generation, and the group is looking to repurpose its Parmelia gas pipeline for hydrogen.

These initiatives could also be an avenue to extend the useful lives of its key assets, something JP Morgan said should lay to rest investor concerns over the group’s remaining gas pipeline.

However, whilst JP Morgan reckons consensus upgrades are on the way, it hasn’t moved an inch on its valuation or rating on the stock.

It still rates APA Group as a hold/neutral with a $10.50 per share valuation on the company and is joined by 6 other brokers in their hold rating.

APA Group share price summary

In the last 12 months, the APA share price has gained just 2% and is flat on the year to date as well. During the previous single month of trading, shares have walked another 2% in the green, and are up 1% on the previous week.

The post Are analyst upgrades on the way for APA (ASX:APA) shares? appeared first on The Motley Fool Australia.

More reading

• Here’s why the APA (ASX:APA) share price could be a top dividend share
• APA (ASX:APA) share price falls despite laying ‘foundation for future growth’
• Powering up: is the APA (ASX:APA) share price about to be electrified?

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

from The Motley Fool Australia https://ift.tt/hXzw4LY

Westpac Banking Corp (ASX: WBC) shares are on the move today as the bank announces it has created a new position to drive change.

Westpac shares are up 0.43% today, trading at $23.59 at the time of writing. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.55% today.

Let’s take a look at what’s happening at Westpac.

New executive

Westpac has created a new position with the title Chief Transformation Officer. Yianna Papanikolaou has been appointed to the role and will join the company’s executive team. Her responsibilities will include major change, investment programs and accountability for the bank’s Customer Outcomes and Risk Excellence (CORE) program.

Papanikolaou recently joined Westpac as the general manager of the Group Transformation Office.

CEO Peter King commented on the appointment:

Continuing to transform culture and risk management remains a major focus for the Group in our efforts to build a simpler, stronger bank and the CORE program is an integral part of this plan.

Yianna brings a wealth of global experience in large scale transformations across major organisations.

Subject to regulatory approval, Papanikolaou will start in April. Her global experience includes senior roles at Deutsche Bank in the United Kingdom, Royal Bank of Scotland, and Accenture.

My Foolish colleague James reported recently that the team at Morgans consider Westpac shares great value now. The broker has a $29.50 price target on the company’s shares.

The S&P/ASX 200 Financials Index (ASX: XFJ) is climbing 0.79% at midday on Wednesday. Westpac makes up 18% of the total market cap of the financials sector on the ASX.

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is up 1.42% today, National Australia Bank Ltd (ASX: NAB) is climbing 0.24%, Commonwealth Bank of Australia (ASX: CBA) is ahead 0.64% and Macquarie Group Ltd (ASX: MQG) is 1.05% in the green.

Westpac share price recap

The Westpac share price has fallen nearly 5% in the past 12 months, though it has gained more than 10% year to date.

In the past month, Westpac shares have climbed 2.25%, and nearly 9% in the past week.

Westpac has a market capitalisation of $82.5 billion based on its current share price.

The post Own Westpac shares? Here’s why change is afoot appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares analysts say are buys now
• Why ASX 200 bank shares are storming higher today
• Is the NAB (ASX:NAB) share price a buy? Top broker expects sector-leading earnings growth
• Why this broker has big doubts over Westpac’s (ASX:WBC) cost cutting plans
• 5 things to watch on the ASX 200 on Friday

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 and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/GIZj7bP