Tag: Motley Fool

Shares in Australia and New Zealand Banking Group Ltd (ASX: ANZ) are falling today and now sit at $25.16 apiece.

The banking giant has been underperforming the other majors and is now 4.8% in the red this week.

ANZ shares are now down 10% in 2022 compared to a loss of 8% for the S&P/ASX 200 Financials Index (ASX: XFJ) and 9% for the S&P 500 index (NYSE: SPX).

ANZ is the worst performer among the big four banks this year. The second worst performer is Commonwealth Bank of Australia (ASX: CBA) down 8.7% year to date. The best performer is Westpac Banking Corp (ASX: WBC), up 1.5%.

Why is the ANZ share price tracking lower?

Market pundits have overlooked ANZ shares in favour of the other banks this year. Although, investors should note that ANZ is one of the only banks not to have reported its half-yearly accounts.

ASX banking shares took off in January amid talks of a shifting interest rates regime and hot-running inflation.

Now, with economic sanctions placed on some Eastern European banks due to the Russian invasion of Ukraine, there’s nervousness in the global banking sector. This is reflected in the price movements of banking indices around the world.

Benchmark’s tracking shows each of the Australian, American and European (shown by the German banking index) indexes falling into the red, as seen below.

In fact, the trend is quite clear when we look at the number of S&P 500 financial stocks that are above their 200-day moving average versus the number above their 50-day moving average.

For reference, if a stock is trading above either of these two averages, it tends to be considered in an uptrend.

Both have taken a big step backwards in the last month or so, however, the number of S&P 500 financials stocks trading above the 200-day is down 40% whereas the number below their 10-week average is 72%.

Check out the volatility of these numbers on the chart below to see how things have progressed for ASX financials over the past 12 months.

The market is continuing to digest the wave of macro-economic activity that’s shaking up the financial system. This is most certainly impacting shares like ANZ.

Not everyone is as downbeat on ANZ

Analysts at JP Morgan and Goldman Sachs are both bullish on the bank and recommend it as a buy right now. Both brokers like ANZ’s prospects for 2022. JP Morgan increased its net interest margin (NIM) forecasts by 3% for FY23/24 to reflect rate hikes this year.

Goldman thinks the bank is making good progress on its mortgage business to become more competitive. It has a target of almost $31 for the ANZ share price. JP Morgan values ANZ at a price of $30.50 per share. Both suggest more than 20% upside at the time of writing.

As The Motley Fool reported yesterday, about 60% of brokers have ANZ as a buy right now with a consensus price target of $29.13.

The post Why is the ANZ (ASX:ANZ) share price getting battered more than the other banks this week? appeared first on The Motley Fool Australia.

More reading

• Australia’s newest tech unicorn, Zeller, is taking on the ASX banks. Here’s how
• Can this ASX 200 bank share flame 20% higher?
• Top brokers name 3 ASX shares to buy today
• Why did the ANZ (ASX:ANZ) share price lag the other banks in February
• Own ANZ shares? Here’s the bank’s latest move to ‘better prepare for future growth’

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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. owns and has recommended Goldman Sachs. 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/rTCsaoK

Post-COVID economic recovery and now the war in Ukraine have prompted experts to warn that energy prices will climb.

Already a new gas pipe from Russia to Germany has been halted, placing higher demand for energy from other parts of the world.

According to Datt Capital chief investment officer Emanuel Datt, there are numerous voluntary boycotts of Russian products in addition to the official sanctions.

“For instance, a commodity trading house may struggle to obtain the requisite insurance and finance to cover the purchase and transport of a shipment of Russian-origin commodities,” he said.

“As such, almost overnight, we have seen an enormous uplift in demand for commodities of non-Russian origin to fill this sudden supply gap.”

Datt cited Newcastle thermal coal futures climbing 46% overnight to close at US$446 per tonne.

“This is in contrast to prices of ~US$190 a tonne only 2 months ago,” he said.

“The price of crude oil has exploded with the Brent benchmark currently trading at ~US$116 a barrel vs US$77 a barrel 2 months ago.”

All this has led to ideal conditions for investors to pounce on certain Australian companies that are set to benefit, according to Datt.

He specifically named 3 ASX shares in the energy sector “worth keeping a close eye on”:

Selling coal at 3 times the price

According to Datt, Russian coal supplies about 15% to 20% of Japanese and Korean demand.

As an exporter to those countries, Whitehaven Coal Ltd (ASX: WHC) can take advantage.

“Whitehaven’s customers will likely be willing to increase purchase volumes from Whitehaven at higher prices than has been traditionally achievable.”

Just sheer mathematics is on Whitehaven’s side. 

In the last half-yearly results, the company reported an average realised price of $211 per tonne.

“With current spot prices over $600 a tonne, we believe that Whitehaven is well equipped to capture these higher prices at greater production volumes than last quarter.”

Datt also likes the $400 million share buyback, where Whitehaven could purchase up to 10% of its own shares on-market.

“The debt-free balance sheet and high-quality assets make this a compelling value proposition at a market cap of less than$4 billion.”

Whitehaven shares have rocketed more than 43% for the year so far.

Gas and oil ready to be snapped up

Datt noted that Woodside Petroleum Limited (ASX: WPL) would now become “a global top 10 oil and gas company” after absorbing BHP Group Ltd (ASX: BHP)’s petroleum arm.

The business’ last reported realised prices for liquified natural gas and oil were US$28/MMBtu and US$80/bbl respectively, which are considerably below current market prices.

“We see Woodside as possessing strong leverage to higher O&G prices going forward whilst also paying an attractive dividend yield.”

Indeed, Woodside currently pays out a dividend yield of just over 6%.

And finally, Datt likes the look of Santos Ltd (ASX: STO).

“Last calendar year, Santos managed to capture realised prices of US$9/MMBtu for LNG and US$76/bbl,” he said. 

“Accordingly, there is a strong opportunity to capture materially higher prices given the current market conditions.”

Datt added that the business has room for further productivity improvements.

“We also expect that Santos will reduce its stake in certain development assets, which provide the potential for future capital returns, along with its regular dividend.”

Santos shares currently yield 2.54% of dividend payouts.

The post 3 ASX shares to cash in from the energy crisis: expert appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• Aussie coal is in hot demand, and these ASX coal shares are booming
• The Woodside (ASX:WPL) share price has smashed at least 8 52-week highs in the last month. What’s next?

Motley Fool contributor Tony Yoo 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/9gKzWRV

It hasn’t been a very pleasant day for the CSL Limited (ASX: CSL) share price so far today. Or the S&P/ASX 200 Index (ASX: XJO) for that matter. At the time of writing, the ASX 200 has fallen by 1.36% and is back under 7,100 points. As it currently stands, CSL shares are trading at $254.83 each, down 1.04% so far today.

it appears the announcement that CSL made last night hasn’t been enough to buck the trend of the broader market. Although, it’s worth saying that perhaps it has been enough to give the healthcare giant a slight edge over the ASX 200.

As my Fool colleague James covered this morning, CSL has announced an update regarding its major acquisition plans. Back in December last year, CSL announced it was intending to acquire the Swiss biotech company Vifor Pharma for US$12.3 billion in cash. Well, we got an update on this proposed buyout after market close yesterday.

CSL revealed that 74% of Vifor shares have been tendered as part of its public tender offer. Originally, the deal had an 80% target. However, CSL has decided to waive this requirement and will be pressing ahead with the deal. It still plans to have the acquisition cross the finish line by mid-2022.

So perhaps this development is having an impact on the CSL share price so far this Friday.

CSL shares to pay out next month

But there is also a big event for CSL coming up next week.

Monday will see this healthcare share trade ex-dividend for its upcoming interim dividend payment. This dividend was announced when the company delivered its half-year earnings results last month. The dividend investors are to receive will be a US$1.04 payment, which will be worth approximately A$1.42 per share going off current exchange rates. The raw US$1.04 payment is flat on last year’s interim dividend. It will come unfranked.

So today is effectively the last day that investors can buy CSL shares if they want to receive this dividend. Come Monday, any new investors will be ineligible, and as such, the value of this dividend will leave the CSL share price. So don’t be surprised if we see a share price fall for CSL on Monday. But investors will have to wait until April 6 to see this dividend hit their bank accounts. Something to look forward to.

At the current CSL share price, this ASX 200 healthcare share has a market capitalisation of $123.27 billion, with a dividend yield of 1.02%

The post The CSL (ASX:CSL) share price is falling today, but here’s what investors can look forward to next week appeared first on The Motley Fool Australia.

More reading

• Think you have the ‘right skills’ for investing in ASX shares? Read this
• CSL (ASX:CSL) share price on watch following Vifor Pharma acquisition update
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• ASX 200 (ASX:XJO) midday update: Corp Travel Management’s ACCC boost, Zip downgraded

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/gAJYsex

It’s a case of another day, another decline for the Zip Co Ltd (ASX: Z1P) share price on Friday.

In morning trade, the buy now pay later (BNPL) provider’s shares are down 8% to a new 52-week low of $1.72.

This means that the Zip share price is now down over 43% in the space of a month and 22% since announcing its capital raising.

What does this mean for the share purchase plan?

Earlier this week Zip launched a $198.7 million capital raising. This comprises a (now complete) $148.7 million institutional placement at $1.90 per new share and a share purchase plan aiming to raise up to $50 million.

Proceeds from the placement and share purchase plan will be used to help Zip strengthen its balance sheet and position it for sustainable growth by providing more capital runway to execute on the potential synergies from the proposed acquisition of Sezzle Inc (ASX: SZL).

But with the Zip share price now trading 9.5% below its placement price, investors may be wondering what this means for the share purchase plan.

When announcing the share purchase plan, Zip advised that eligible shareholders have the opportunity to apply for up to $30,000 of new Zip shares at the lower of the placement price or a 2% discount to the five-day volume weighted average price of Zip shares up to and including the closing date of the plan. This is expected to be 1 April 2022.

Based on the current Zip share price, the latter is looking to be the more likely price for the share purchase plan. However, this may not be overly popular with shareholders given the minimal discount compared to the 14% discount that institutional investors received. This may ultimately lead to Zip’s share purchase plan falling short of its target.

The post The 14% discount offered on the Zip (ASX:Z1P) share purchase plan has now vanished. What now for investors? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 financial shares that hit 52-week lows on Thursday
• Top brokers name 3 ASX shares to sell today
• Why Coles, Dusk, Monadelphous, and Zip shares are dropping today
• Zip (ASX:Z1P) shares have tumbled 14% since the merger news. Top brokers offer possible reasons why
• ASX 200 (ASX:XJO) midday update: Corp Travel Management’s ACCC boost, Zip downgraded

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 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.

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

Picking winning investments so far this year has been a difficult task with macroeconomic issues muddying the waters. As the ‘cheap’ money is wound down by central banks, growth is settling back into a more sustainable trend. However, the Northern Star Resources Ltd (ASX: NST) share price hasn’t been negatively affected by this.

On the contrary, the second-largest ASX-listed mining company has been enjoying a run-up in recent weeks. To be precise, the company’s shares are now up 17% from where they were a month ago. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down a disappointing 0.1%.

What’s behind the added lustre?

As many investors would know, gold is considered to be somewhat of a safe haven during times of uncertainty. When markets become more fearful and go risk-off, the precious metal often siphons up a portion of the fleeing funds.

Inflation has been a common thematic behind an investment case for gold. Supply chains are still struggling, while elevated demand is failing to be met with new supply across various markets.

Numerous ASX-listed companies have warned of inevitable price reasons as they begin to feel the bite of inflationary costs. Fortunately for the Northern Star share price, this is the type of scenario where it can thrive.

The onset of a conflict between Russia and Ukraine has amplified these issues. Investors are now factoring in increased commodity prices and are seeking more defensive assets.

The byproduct is a gold price that is 7.1% stronger from a month ago. At the time of writing, the physical asset is worth US$1,936 an ounce. As shown in the chart below, this coincides with the S&P/ASX 200 VIX — or volatility Index — spiking in late January and February.

Expectedly, ASX-listed Northern Star Resources has rallied in unison with higher gold prices.

Tracking the Northern Star Resources share price

The uptick in the gold mining company’s share price is a welcome reversal for shareholders. Previously, the Northern Star share price had been trending downwards since May 2021, falling 28% in the process.

However, the recent boost means investors in the mining company are now up 3.9% over the past year. Though, when adding on dividends, the total return expands to around 6% — which isn’t too shabby.

The post Northern Star (ASX:NST) share price is shining 17% brighter than a month ago appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX gold shares are having another stellar day
• 5 things to watch on the ASX 200 on Wednesday
• Here’s why ASX gold shares just had their best month in 2 years
• 5 things to watch on the ASX 200 on Tuesday
• Is Bitcoin or gold a better buy for these uncertain times?

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.

from The Motley Fool Australia https://ift.tt/t8OFHDl

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.

What happened 

After an impressive few weeks, the value of cryptocurrencies fell sharply on Thursday. The biggest market news was Federal Reserve chair Jerome Powell saying that he expected to support a short-term interest rate increase at March’s Fed meeting, which some investors may have thought was currently off the table. 

At 12:50 p.m. ET, Ethereum (CRYPTO: ETH) had fallen 5% in the last 24 hours, Solana (CRYPTO: SOL) was down 7.6%, and Cardano (CRYPTO: ADA) was down 5.9%. 

So what 

Powell told lawmakers yesterday that he would support a small increase in interest rates at the next Federal Reserve meeting, which is in two weeks. His comments were taken as a negative for risk assets and some growth stocks, which have risen in the last few weeks as geopolitical turmoil and slower growth from businesses led to speculation that the central bank would put off its expected hikes. But Powell is more concerned about inflation right now, which could end up getting out of control if rates stay low for too long.

While the Federal Reserve controls short-term interest rates through its bond purchases, it has less impact on longer-term rates that are determined by the market. That’s why it’s interesting that mortgage rates, which are usually tied to the 10-year treasury rate, are down because investors see slowing growth for the economy. 

Some of the crypto euphoria about demand in Russia and Ukraine may be wearing off too. There have been multiple reports over the last few days that millions of dollars in cryptocurrency are flowing into Ukraine while Russians are trying to convert rubles to cryptocurrency to get money out of the country. This may indeed be taking place, but volumes of a few million dollars aren’t enough to sustain a move in the multi-trillion-dollar crypto market for long. 

Now what 

On days like today, perspective is always important. While cryptocurrencies are down today, they’re still up big over the past week. Ethereum is up 16.4%, Solana is up 13.5%, and Cardano is up 12.2% in the last 7 days, despite today’s drop. 

I also don’t see any news that fundamentally undermines the long-term investment thesis in cryptocurrencies, especially those building utilities like the ones mentioned here. Developers are still building, more users are coming into the market, and long-term the future is still bright. 

Chalk up today’s move as volatility in the market and in cryptocurrency anything can drive volatility. Over the next few weeks and months it’s likely there will continue to be wild swings as interest rates rise and news about Russia’s invasion of Ukraine continues to come out, so prepare for more volatility ahead. 

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

The post Why Ethereum, Solana, and Cardano dropped today appeared first on The Motley Fool Australia.

More reading

• Considering adding crypto to your super? Read this
• How might the Ukraine crisis impact the Ethereum price?
• Why these 2 cryptos are booming in 2022 as the Bitcoin price wallows
• Sanctions are a good thing? Why Bitcoin, Ethereum, and Dogecoin are recovering nicely today
• Ethereum price down again today as founder touts benefits of ‘crypto winter’

Travis Hoium owns Ethereum and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Ethereum. The Motley Fool Australiaowns and has recommended Ethereum. 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/dToWVPL

Investing in ASX shares is as much about controlling and regulating one’s temperament as it is about knowing the intricacies of the global financial system.

Having a long-term investment horizon is the advocate of most experts in the field, while refraining from speculative, over-priced assets at the same time. In stock investing, that requires making an informed decision on a raft of fundamental factors, not least the current economic climate.

Alas, the assumption is, that in order to beat the market, there must be some kind of magical elixir that separates the ‘amateurs’ from the market pundits.

Well, that’s not so much the case, and most experts corroborate that you don’t need an IQ of 160 to excel in the market. It’s the right mindset, temperament and emotion control that might do the trick. That often means following a systematic approach, not unlike Warren Buffet’s 7 rules to investing, for example.

Key lessons for ASX share investors from an expert

It appears ASX share investors who have the right mindset are set to perform well over the long run. That’s according to what David Guy, joint managing director of Leithner & Company Ltd, had to say for Livewire recently.

Guy notes investors who adopt a pragmatic approach to their investment reasoning might make better decisions. It’s all about the right mindset, staying away from “non-financial”, cognitive factors.

“In that regard, individual investors who have the right skills and temperament (or professionals who are unconstrained by popularity) may have an advantage over ‘the market’ as they are answerable only to themselves,” he said.

That involves knowing the business and industry you are investing in, Guy says.

Directly quoting investing legend Peter Lynch’s book, Beating the Street, he noted “you use your edge by investing in companies or industries you already understand”.

“Your investor’s edge is not something you get from Wall Street experts. It’s something you already have.”

What does that involve?

Investors should retain a long-term approach in their investment philosophy, avoiding the short-term market noise while maintaining conviction on the ASX share, Guy added.

This ultimately helps guide investment reasoning as well, in the sense of buying and selling decisions, which – if you’ve ever had to deal with a difficult loss on the stock market, you’ll know – can be quite complicated.

“You are not necessarily wrong just because ‘the market’ doesn’t agree with you in the short, medium, and sometimes even the long term,” Guy remarked.

“If a business remains attractive and the market pricing of that business remains attractive then you need to objectively review where you are at – would I buy this share at 4 cents, knowing what I know?”

“If so – and provided that you would remain appropriately diversified – then the fact you initially paid 33.6 cents for the same share should not preclude you from buying more.”

Ultimately Guy advocates that investors remove the “non-financial” components to their investment reasoning in order to achieve a better outcome in the ASX share market.

“Investors may do better in the long run if they are not forced to make investment decisions based on non-financial factors (embarrassment, sick of explaining negative results to clients etc),” he said.

In the words of Peter Lynch once more – “it pays to be patient, and to own successful companies”.

The post Think you have the ‘right skills’ for investing in ASX shares? Read this appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• ASX 200 (ASX:XJO) midday update: Corp Travel Management’s ACCC boost, Zip downgraded
• 5 things to watch on the ASX 200 on Thursday
• These 3 ASX 200 shares are topping the volume charts on Wednesday

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/tySgAaE

Buy now, pay later (BNPL) shares are dropping from the ASX like flies, but there could be one standing in the wings to take some of the deserted places.

Former ASX favourite, Afterpay officially left the exchange earlier this year following its takeover by Block Inc CDI (ASX: SQ2), formerly named Square.

ASX BNPL fans were hit with more news earlier this week when Sezzle Inc (ASX: SZL) accepted a takeover offer posed by Zip Co Ltd (ASX: Z1P).

While the news temporarily boosted the Sezzle share price, it’s likely there will soon be one less BNPL stock on the Australian index.

Or will there? BizPay – a technology company providing instalment-style payment options for businesses – is planning to take on an initial public offering (IPO).

Here are all the details.

Will BizPay be the next ASX BNPL share?

BizPay is gearing up for a public listing, following in the recent steps of fellow financial disruptor, Beforepay Group Ltd (ASX: B4P).

As the name alludes, Beforepay provides users with early access to their salary.

Its share price has plunged 42% since its disastrous January float. Right now, stock in the company is trading at $1.10, a far cry from its IPO’s offer price of $3.41 per share.

But BizPay assumably expects its own listing to prosper.

BizPay charges users between 1% and 4% to split payments into either fortnightly or monthly instalments.

The BNPL company’s float could bring it access to additional capital, helping it to boost its business’ abilities.

It’s hoping to launch its ASX IPO in September, according to reporting by the Australian Financial Review.

The publication states BizPay counts Macquarie Group Ltd‘s (ASX: MQG) Macquarie Investment Management among its investors.

No doubt, all eyes will be on the company over the coming months to see if it will be the next ASX BNPL share.

As the AFR reports, BizPay’s average invoice is worth around $12,300 and customers generally use the service 5 times each month.

It currently boasts 1000 customers and expects that to increase to 12,000 this year.

If all goes to plan, BizPay will be reporting positive earnings before interest, tax, depreciation, and amortisation (EBITDA) by the end of next financial year.

The post Is the ASX set to welcome yet another BNPL share? Macquarie-backed company gears up for IPO appeared first on The Motley Fool Australia.

More reading

• Is Macquarie (ASX:MQG) gearing up to ink its next big deal?
• ‘We are accountable’: Macquarie (ASX:MQG) weighs in on the future of green hydrogen
• 2 big-cap ASX shares that even this small-cap expert recommends
• Macquarie (ASX:MQG) shares have rallied 34% in a year. Here’s why this fundie says there’s more to come
• Why are ASX 200 bank shares getting so much love 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. owns and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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.

What happened

Following a rebound in the stock of Tesla (NASDAQ: TSLA) in late February that took it from below $800 closer to $900, the electric-vehicle (EV) maker’s shares are taking a breather on Thursday. The stock was down about 2.1% as of 10:20 a.m. ET today. 

The decline is likely primarily due to a bearish day for the overall market on Thursday, namely the tech-heavy Nasdaq Composite.

So what

Shares of Tesla have had a rough year so far. Year to date, the stock is down more than 18%. But even including the pullback on Thursday, shares are up 8% over the last five trading days.

Highlighting the bearish day for the overall market, the Nasdaq Composite is down about 0.8% at the time of this writing. But many growth stocks like Tesla are down several percentage points or more. 

Now what

Growth stocks like Tesla have seen significant volatility this year as investors weigh the impact of likely interest rate hikes by the Federal Reserve. Higher interest rates are generally viewed as less favorable for assets with valuations determined largely by expectations for higher cash flows far into the future. Tesla, with its price-to-earnings ratio of 176, certainly fits the bill of a growth stock. 

But investors should note that Tesla’s business has seen extraordinary growth recently. Fourth-quarter deliveries rose 71% year over year despite an extremely challenging environment for auto manufacturers. And management expects growth of 50% or more in vehicle deliveries this year — and that’s expected even if Tesla fails to get its two new factories up and running well. These factors arguably justify the stock’s premium valuation. 

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

The post Why Tesla stock fell on Thursday appeared first on The Motley Fool Australia.

More reading

• Giddy up: Core Lithium (ASX:CXO) share price races 11% higher on Tesla deal
• Why Tesla stock popped today
• Tesla, Coinbase help the Nasdaq hold its ground Monday
• ASX lithium shares or EV makers, what’s been the better bet?
• Liontown (ASX:LTR) share price rockets 16% today on Tesla lithium deal

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

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

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

The Nick Scali Limited (ASX: NCK) share price is heading south during morning trade. This comes despite the company not releasing any market-sensitive news today.

At the time of writing, the furniture retailer’s shares are down 5.7% to $11.75.

Why are Nick Scali shares falling today? 

Following the company’s half-year results released last month, investors are eyeing Nick Scali shares as they go ex-dividend today.

This means if you purchased the company’s shares yesterday or before, you will be eligible for the latest dividend.

Traditionally, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors try to make a quick profit after securing the dividend.

What does this mean for Nick Scali shareholders?

For those eligible for Nick Scali’s interim FY22 dividend, shareholders will receive a payment of 35 cents per share on 28 March. The dividend is fully-franked, which means investors can expect to receive tax credits at tax time.

The dividend reflects a decline of 12.5% when compared against the prior corresponding period (40 cents per share).

Are Nick Scali shares a buy now?

Reflecting on the financial performance for the first half, analysts at Wilsons have weighed in on Nick Scali shares.

The broker raised its 12-month price target by 3.6% to $17.60 for the company’s shares. Wilson analysts believe that there is still more upside in the Nick Scali share price regardless of its mixed performance recently.

Based on the current share price, this implies an upside of about 49% for Nick Scali investors.

Nick Scali share price summary

Since the beginning of 2022, Nick Scali shares have fallen roughly 18% on the back of weakened investor sentiment. The company’s shares reached an all-time high of $16.30 in November, before backtracking thereafter.

Nick Scali commands a market capitalisation of roughly $1 billion and has a trailing dividend yield of 5.45%.

The post Why is the Nick Scali (ASX:NCK) share price sliding 6% today? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX retail shares like Kogan (ASX:KGN)?
• 2 ASX dividend shares for strong income in 2022
• Fund manager reveals one key metric in finding quality ASX shares during a correction
• Is the Nick Scali (ASX:NCK) share price a comfortable buy after HY22?
• No deal: Nick Scali (ASX:NCK) share price lifts as latest rumours quashed

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 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/rhVxslI