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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

Rio Tinto Limited (ASX: RIO) is watching the Russian invasion of Ukraine closely as the business looks to consider what this means for its business.

The business has indirect dealings with Russia because the Rusal business has a 20% interest in the Queensland Alumina Limited (QAL) business in Australia. When sanctions were implemented in 2018, the miner also noted that it reviewed Rusal’s associated supply and offtake arrangements, bauxite sales to Rusal’s refinery in Ireland and offtake contracts for alumina that are used at Rio Tinto’s smelters.

But that was in 2018.

Right now, there is a global surge of businesses committing to end ties with Russia and its oligarchs.

Rio Tinto is being urged to look at the joint venture to ensure they are blocked from receiving any profit from Australia’s natural resources, according to reporting by The Guardian.

The newspaper quoted Dan Gocher, the director of climate and environment at the Australasian Centre for Corporate Responsibility, who said that companies with links to Russia:

…must immediately review their relationships with companies owned or part-owned by oligarchs aligned with Russian President Vladimir Putin. The world has spoken, and the strategy now is to isolate Russia completely.

Rio Tinto’s ongoing cooperation with oligarch-owned companies legitimises Putin’s regime.

Furthermore, some of the profits from Australian alumina and oil and gas projects will end up in the hands of the people responsible for propping up Putin’s murderous regime.

What does the ASX miner make of this?

The miner is one of the largest resource businesses in the world. Global events can have effects on both its operations and investor ESG sentiment on the business.

The Guardian quoted a spokesman who said the company was:

…closely monitoring the situation in Ukraine and related sanctions. We are confident that we have appropriate structures in place to ensure QAL’s operations will not be disrupted.

Time will tell whether this actually has any impact or changes for Rio Tinto or the QAL business.

Rio Tinto share price snapshot

Since the start of 2022, the Rio Tinto share price has risen by 27%.

The post Own Rio Tinto (ASX:RIO) shares? Here’s why the miner is ‘closely monitoring’ the Ukraine situation’ appeared first on The Motley Fool Australia.

More reading

• Why is the iron ore price hitting 6-month highs?
• ASX 200 dives to 4-day low following Ukraine nuclear power plant crisis
• Why Core Lithium, MVP, Rio Tinto, and South32 shares are rising today
• Here’s how these top 3 ASX 200 mining shares performed in February
• ASX 200 (ASX:XJO) midday update: Rio Tinto, South32 storm higher, PointsBet sinks

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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As well as being home to countless blue chip shares, the Australian share market is home to a good number of promising small caps.

Three small cap shares that could be worth adding to your watchlist are listed below. Here’s what you need to know about them:

Adore Beauty Group Limited (ASX: ABY

The first small cap share to look at is Australia’s leading online beauty retailer, Adore Beauty. Although the company has come along way since being founded in a Melbourne garage in 1999, it still only has a modest slice of the Australian beauty and personal care market. This market is estimated to be worth $11.2 billion a year at present, which gives Adore Beauty a long runway for growth. Especially given the structural shift online and its growing customer base, which is approaching 1 million.

UBS remains positive on Adore Beauty. It recently retained its buy rating with a $4.70 price target.

Avita Medical Ltd (ASX: AVH

Another small cap ASX share to look at is Avita Medical. It is a global regenerative medicine company best known for its Recell system. This is a spray-on skin treatment used for burns victims. It is also looking to use its system to treat vitiligo and is working on an interesting project with Houston Methodist Research Institute. That project is essentially looking for the fountain of youth by finding a way to reverse cellular ageing.

Bell Potter is positive on the company. It has a speculative buy rating and $4.60 price target on its shares.

Mach7 Technologies Ltd (ASX: M7T

A final small cap ASX share to watch is Mach7. It is a medical imaging data management solutions provider that allows users to create a clear and complete view of the patient. Operators then use this to help them inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. It appears well-placed for the future, particularly given how demand for this type of software continues to grow thanks to industry tailwinds such as telehealth.

Morgans is a fan of the company. It currently has an add rating and $1.55 price target on the company’s shares.

The post 3 promising small cap ASX shares to watch appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Avita Medical Limited and MACH7 FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited, Avita Medical Limited, and MACH7 FPO. 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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Today, the S&P/ASX 200 Index (ASX: XJO) walked back some of its gains made throughout the week amid Russia’s attack on Ukraine’s largest nuclear power plant. At the end of the session, the benchmark index finished 0.57% lower at 7,110.8 points.

Only two sectors were able to move meaningfully higher during the final session of the week. In a day of uncertainty, investors tended to lean towards more defensive areas of the market, including consumer staples and utilities. In contrast, money was flowing away from hard-hit sectors such as tech shares and retail.

However, the question is: which shares managed to stay in the green on the ASX today? Here are the top ten stocks that pulled through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Newcrest Mining Ltd (ASX: NCM) was the biggest gainer today. Shares in the gold mining company rallied 2.77% as producers of the precious commodity continue to benefit from a rush to, quote on quote, safe havens. Find out more about Newcrest Mining here.

The next biggest gaining ASX share today was Yancoal Australia Ltd (ASX: YAL). The coal producer continues to hit new 52-week highs as countries grapple with finding alternative energy sources outside of Russia. Shares in the company rose 2.74% in another green showing. Uncover the latest Yancoal Australia details here.

Today’s top 10 biggest gains were made in these ASX shares:

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Playing limbo… Magellan (ASX:MFG) share price hits 7-year low
• ASX 200 dives to 4-day low following Ukraine nuclear power plant crisis
• 5 ASX 200 shares slumping to 52-week lows on Friday
• Why Infomedia, Newcrest, Piedmont Lithium, and Woolworths shares are rising today
• ASX 200 (ASX:XJO) midday update: Block, Zip tumble, QBE’s asset sale

Motley Fool contributor Mitchell Lawler 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 price of iron ore surged on Friday amid news China’s strict COVID-19 elimination strategy could soon be relaxed.

That could make way for a surge of infrastructure growth in the nation, which would likely, in turn, increase demand for iron ore.

Of course, that would be good news for producers of the metal such as ASX shares BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Ltd (ASX: FMG).

Let’s take a closer look at the news that boosted the commodity’s price today.

What drove the iron ore price higher today?

China is getting ready to reopen, with plans to scrap parts of its COVID-zero policy in select areas over summer (June to August), according to reporting by the Wall Street Journal.

Following the initial relaxing, a widespread reduction in China’s suppression strategy could begin in spring, sources told the publication.

The country is then expected to return to a more normal reality next year.

China is the world’s biggest importer of iron ore. Thus, an end to its COVID-19 strategy could see it demanding more of the steel-making material.

The iron ore price hit its highest point in six months – US$161.20 per tonne – on Friday, according to the Australian Financial Review (AFR).

Early last month, The Motley Fool Australia reported on the outlook for iron ore producers according to Randal Jenneke, head of Australian equities at T. Rowe Price.

Janneke believes, after the Chinese market fell in 2021, recovery-fuelled growth in China will drive the iron ore price this year.

And such growth was seemingly made evident recently. China’s Purchasing Managers’ Index (PMI) rose to 50.2 in February.

The PMI outlines the health of the nation’s manufacturing sector. Any result above 50 reflects growth in the sector, while results below 50 indicate contractions.

Finally, there could be more good news for the iron ore price next week.

All eyes will be on China over the weekend as the nation’s ‘Two Sessions’ meetings begin.

The meetings will see China’s key economic targets for the year ahead revealed, as well as other important matters, reports Reuters.

The post Why is the iron ore price hitting 6-month highs? appeared first on The Motley Fool Australia.

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• ‘Hope for the best and plan for the worst’: BHP boss
• Why Core Lithium, MVP, Rio Tinto, and South32 shares are rising today

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

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There are a few ASX exchange-traded funds (ETFs) which hit 52-week lows on Friday.

Volatility has increased across the global share market.

There is an ongoing war between Russia and Ukraine.

Investors are also looking at what’s happening with inflation and interest rates. Central banks think that it’s very important that inflation doesn’t get too far ahead. The Reserve Bank of Australia (RBA) has a target range for inflation of between 2% to 3%. The RBA targets this range because:

This is a rate of inflation sufficiently low that it does not materially distort economic decisions in the community. Seeking to achieve this rate, on average, provides discipline for monetary policy decision-making, and serves as an anchor for private-sector inflation expectations.

The US Federal Reserve has a similar sort of expectation that it will keep a lid on inflation.

However, in January the market learned that US inflation in December was 7% higher than a year earlier. That was the fastest pace since June 1982.

US Fed boss Jerome Powell says that the plan is to increase interest rates by 0.25% this month. There are expectations of quite a few more increases during this year.

Why do interest rates matter so much to ASX shares and ETFs?

At the 1994 Berkshire Hathaway annual general meeting, Warren Buffett said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

ETFs fall

It has been a negative 12 months for some of the following growth-orientated ETFs below:

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Today, the ASIA ETF declined more than 4%. Over the last 12 months it has dropped by 36%.

An ETF’s return is only a reflection of the underlying businesses.

The ASIA ETF owns many of Asia’s biggest tech businesses outside of Japan like Samsung, Taiwan Semiconductor Manufacturing, Tencent, Alibaba, Infosys and KD.com.

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

The ACDC ETF has also fallen by more than 4% today. The past year only shows a 5% decline. But from the middle of January 2022, it has dropped close to 20%.

This ETF, as the name suggests, this gives exposure to the energy storage and production megatrend, including companies involved in the supply chain and production for battery technology and lithium mining. In the portfolio are names like Pilbara Minerals Ltd (ASX: PLS), ABB, TDK, Sumitomo and Hyundai Electric.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

The ESPO ETF dropped close to 5% today. From the middle of November 2021, the ESPO ETF has actually fallen by more than 20%.

This portfolio owns some of the world’s biggest businesses related to the video gaming industry such as Advanced Micro Devices, Tencent, Activision Blizzard, Nintendo, Electronic Arts, Take-Two Interactive Software and Bandai Namco.

The post 3 ASX ETFs hitting 52-week lows on Friday 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 BetaShares Asia Technology Tigers ETF and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports 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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To be fair, the S&P/ASX 200 Index (ASX: XJO) hasn’t had the best end to the week this Friday. The ASX 200 ended up closing 0.57% lower today at 7,110.8 points. But that’s nothing compared to the Magellan Financial Group Limited (ASX: MFG) share price.

Magellan shares had a horrible day, no other way to spin it. The fund manager opened at $15.84 a share this morning, but has closed at $15.48 this afternoon, a drop of 3.25%. What’s worse, Magellan shares fell to a low of $15.18 during intra-day trading. Not only is that low point a new 52-week low for Magellan. But it’s also the lowest point the company’s shares have plumbed in more than 7 years. Yes, the last time Magellan had a share price with a 15 in front of it was way back in December of 2014.

The company, once an ASX 200 high flyer, has now fallen close to 80% from the all-time highs of more than $73 a share that we saw back in early 2020.

There’s been no major news or announcements out of Magellan over the past week. That’s despite the fact that the Magellan share price has fallen more than 13% since Monday morning.

We can probably attribute some of that weakness to the gyrations of the broader market, which has been volatile this week. This has affected many other ASX 200 financial shares.

Magellan share price hits new 52-week low. How did we get here?

However, Magellan’s woes arguably started long before that. This company has been battling a series of negative developments for months now.

For one, the performances of some of Magellan’s most popular funds, such as the Magellan Global Fund (ASX: MGF), have been lagging behind their benchmark indexes for a while now. In the Magellan Global Fund’s case, it has returned 9.9% over the year to 28 February, a good 8.25% below its MSCI World Index benchmark. Its unlisted equivalent also lags its benchmark index over the past 3, 5 and 7 years.

Then there was the dramatic departure of Magellan’s co-founder and star stockpicker Hamish Douglass. Mr Douglass took a leave of absence for health reasons a few months ago amid revelations of his divorce. Another Magellan co-founder, Chris Mackay, has been brought in to fill Douglass’ shoes. But after years of being the face of Magellan, there’s little doubt his departure has shaken at least some investors’ confidence.

Then there is the matter of what has become a sustained outflow of funds under management from Magellan. Over the past few months, the company has revealed an exodus of funds under management (FUM), from both retail and institutional investors. This included the largest institutional mandate Magellan had, that of St. James Place. Late last month, Magellan revealed an 11.37% drop in FUM between 11 February and 25 February.

All of this has likely combined to give investors the new lows we see in the Magellan share price today. No doubt investors will be hoping that the company finds a bottom soon.

The post Playing limbo… Magellan (ASX:MFG) share price hits 7-year low appeared first on The Motley Fool Australia.

More reading

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• The CSL (ASX:CSL) share price is falling today, but here’s what investors can look forward to next week
• Think you have the ‘right skills’ for investing in ASX shares? Read this

Motley Fool contributor Sebastian Bowen owns Magellan High Conviction Trust units. 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 Flight Centre Travel Group Ltd (ASX: FLT) share price has been on a rollercoaster ride over the course of 2022.

The company has been navigating through a series of events that have shaken the world and caused negative investor sentiment. This includes the global pandemic which halted the global economy, and now the geopolitical crisis surrounding Russia and Ukraine.

At market close, the travel agent’s shares are swapping hands for $17.79, down 1.66%.

When comparing from its year to date high of $21.27 on 17 February, this represents a fall of 16.36%.

Is now the time to buy?

What has happened to Flight Centre shares lately?

Late last month, the company delivered its half year results, reporting strong top line growth.

Revenue soared 98.1% to $315.7 million, underpinned by a significant rebound in sales after the Delta spike in August/September 2021.

However, despite the robust performance, Flight Centre recorded an underlying loss of $188 million, up 4% on H1 FY21.

Management advised that this was driven partly by the prior corresponding period benefiting from $65 million of government subsidies.

And while the number of Omicron cases across the country continues to linger, the visibility of travel remains unclear.

Nonetheless, the company is hoping to achieve profit in March/April and a return to pre-COVID TTV levels in FY23.

Are Flight Centre shares a buy?

A couple of brokers weighed in on the Flight Centre share price following the company’s financial scorecard.

The team at Citi cut its 12-month price target by 1.4% to $15.77 for Flight Centre shares. Based on the current share price, this implies a downside of 11.35% for investors.

On the other hand, Macquarie raised its assessment on the company’s shares by 5.6% to $18.85. Its analysts believe that there is still value left in the travel agent over the next 12 months. This represents an uplift of 5.96% for Flight Centre shares at today’s prices.

Flight Centre share price summary

It’s been a challenging 12 months for Flight Centre shareholders, despite gaining around 6% over the period.

The company’s share price reached a 52-week high of $25.28 in early October when Australia had managed the pandemic. However, since the outbreak of the Omicron variant, its shares have nosedived to April 2021 levels.

On valuation grounds, Flight Centre presides a market capitalisation of roughly $3.55 billion, with approximately 199.72 million shares outstanding.

The post Why the Flight Centre (ASX:FLT) share price is down 16% from its year to date high appeared first on The Motley Fool Australia.

More reading

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

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The Magnis Energy Technologies Ltd (ASX: MNS) share price has shot up this week.

The price movement comes as the financial activity of the company’s chairman continues to be investigated by the Australian Securities and Investments Commission (ASIC).

At the market close, the Magnis share price had dropped by 5.49% to 43 cents. However, it is still up 4.87% from last Friday’s closing price.

So, what’s going on with the battery manufacturer?

Magnis chairman under investigation

As reported by The Australian on Tuesday, ASIC has requested documents pertaining to the trading activity of Magnis chairman Frank Poullas.

According to The Australian, letters sent to Magnis by senior ASIC officials in September, seen by the publication, “show the corporate regulator is investigating suspected contraventions of Corporations Act provisions relating to market manipulation and the false trading of shares”.

Information tying the company with “Dubai-based financiers” has also been requested.

Further, The Australian said:

The regulator has separately warned investors who appear to be using Telegram and other messaging platforms to manipulate the Magnis share price that they face prosecution.

This comes after the company last month announced the Imperium3 lithium-ion battery plant in New York — of which Magnis is the major shareholder — was now 57% complete.

The long-delated project had been expected to start production in 2019.

Chairman’s financial activity in question

The financial activity of the chairman is also under question after a number of payments from Magnis were made to Strong Solutions — a company linked to Poullas.

The Australian said an internal report, handed to Poullas in early 2020, showed Strong Solutions was billing Magnis $4,500 a month.

The report noted Poullas was charging Magnis his consulting fee with “no independent oversight of this fee or oversight of work undertaken”.

Magnis responds to media coverage

In mid-November, Magnis entered a trading halt before responding to an article in The Australian that claimed Poullas was under investigation by ASIC.

In its response, the company said the article had “a number of unsubstantiated statements regarding the Company”.

The Magnis share price fell by more than 19% on the day of the response. Since then, two board members have also jumped ship from the company.

Magnis share price snapshot

In the last 12 months, the Magnis share price has increased by 65%. Within that time, shares dropped as low as 26 cents and shot as high as 76 cents. Its shares are down 25% this year to date.

The company has a market capitalisation of $439.42 million.

The post The Magnis (ASX:MNS) share price has climbed 5% this week. What’s been happening? appeared first on The Motley Fool Australia.

More reading

• Playing limbo… Magellan (ASX:MFG) share price hits 7-year low
• Why the Flight Centre (ASX:FLT) share price is down 16% from its year to date high
• Down 35% in a month, why Motley Fool analyst Benny Ou says this ASX tech share is now a bargain buy
• 2 ASX healthcare shares analysts rate as buys
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Motley Fool contributor Alice de Bruin 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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As the saying goes: there’s no such thing as easy money — and 2022 has been a case in point for ASX tech share investors. Since the beginning of the year, the S&P/ASX 200 Info Tech Index (ASX: XIJ) has fallen 25%, while some of the former high flyers have fallen the hardest.

One company caught in the unfortunate shift in sentiment has been communications software-as-a-service (SaaS) company Whispir Ltd (ASX: WSP). In the space of one month, the Whispir share price has shaved off nearly 39% of its value.

However, Motley Fool analyst Benny Ou recently sat down with chief investment officer Scott Phillips to explain how the downtrodden tech name could now be a worthwhile opportunity. The discussion took place as part of The Motley Fool’s Stock of the Week series.

Let’s dive into the details.

Why the Whispir share price might be compelling

Although this ASX tech share has been battered and bruised recently, Ou sees numerous reasons to be bullish on Whispir. Outlining his case, Ou says:

Its differentiated business model is actually driving higher organic growth. Over the last three years, its compounded annual growth rate for revenue is over 37%, which is phenomenal. And recently, in its half-year result, it continued to demonstrate an acceleration of this growth.

The results being referred by Benny Ou landed on 22 February, showing a 70% increase in Whispir’s revenue to a record $39.4 million. On this, the Motley Fool analyst shared his belief that the company’s low-code/no-code platform is driving further adoption.

Importantly, this means companies looking to improve their internal and external communications can do so without the need for an in-house developer.

On top of this, a large addressable market has Ou excited about a long runway of growth. Namely, the niche communication platform as a service market, which is expected to reach US$8 billion by 2025.

Not only that, this ASX tech share has a presence in three distinct markets: Australia and New Zealand; Asia; and North America. However, it is North America that offers “huge potential”, according to the Motley Fool analyst.

Following on from here, Ou highlighted that Whispir’s CEO and founder, Jeromy Wells has skin in the game. With around a 14% stake in the company, there are plenty of reasons for Wells to ensure the success of the business.

What about the risks of this ASX share?

As always, this ASX tech share is not without its risks. Firstly, Ou addressed the elephant in the room — Whispir’s cash burning.

While management has mentioned it foresees the company reaching breakeven in the next two years, if this target isn’t met, it could be detrimental to the share price.

In a similar vein, the possibility for future capital raising could be a risk, as Ou notes:

[…] the company needs to maintain, in my view, a strong cost discipline while it’s continuing to accelerate growth, and this will need to be regaining a lot of investor confidence. So management, however, doesn’t plan to raise capital to fund its existing growth expansion strategy. However, I think this can’t be ruled out entirely.

Lastly, the competitive landscape in North America creates execution risk around Whispir’s greatest potential growth driver. A misplaced step in this market could “dramatically reduce the company’s growth potential in the future”, says Ou.

All in all, the analyst considers this ASX tech share a compelling opportunity at current levels.

The opinions expressed in this article were as at 1 March 2022 and may change over time.

The post Down 35% in a month, why Motley Fool analyst Benny Ou says this ASX tech share is now a bargain buy appeared first on The Motley Fool Australia.

More reading

• Why is the Whispir (ASX:WSP) share price sliding 5% on record revenue?
• 3 small cap ASX shares with enormous upside potential
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• 2 exciting small cap ASX shares with enormous potential

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

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Due to favourable tailwinds such as ageing populations and improving technologies and treatments, demand for healthcare services is expected to grow strongly over the next few decades.

In light of this, the healthcare sector could be a good place to consider investing with a long term view. But which shares should you consider buying? Two highly rated ASX healthcare shares to consider are listed below:

Pro Medicus Limited (ASX: PME)

The first healthcare share that could be in the buy zone right now is Pro Medicus. It provides health imaging technology that facilitates the clinical assessment of medical images.

The company notes that its Visage 7 Enterprise Imaging Platform enables imaging organisations to do things they have always wanted to do, but never could. Visage 7 offers immediate differentiation for imaging organisations seeking to leapfrog the status quo of commoditised legacy PACS.

Demand for its offering has been growing strongly over the last few years, which has underpinned rapid revenue and earnings growth. The good news is that the team at Bell Potter believe this strong form can continue.

For example, the broker is forecasting net profit growth of 48% to $44.9 million in FY 2022. After which, it expects the company’s profits to grow to $55.6 million in FY 2023 and then $82.2 million in FY 2024.

Bell Potter has a buy rating and $55.00 price target on Pro Medicus’ shares.

ResMed Inc. (ASX: RMD)

Another ASX healthcare share that could be a top option for investors right now is ResMed. It is a medical device company with a focus on the sleep treatment products.

This includes medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders including sleep disordered breathing, chronic obstructive pulmonary disease (COPD), neuromuscular disease, and other chronic diseases.

The good news is that thanks to its significant market opportunity, the growing prevalence of sleep disorders, and new product launches, it has been tipped to continue its growth for the foreseeable future. Particularly with one of its biggest rivals out of action currently as it battles through a massive product recall.

Morgans is bullish on ResMed and currently has an add rating and $40.46 price target on its shares. The broker recently said that “nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

The post 2 ASX healthcare shares analysts rate as buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended ResMed Inc. 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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