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

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

What happened

Popular metaverse cryptocurrency The Sandbox (CRYPTO: SAND) has seen some wild price action today. As of noon ET, this token has surged into positive territory, up 2.1% over the past 24 hours. This move negated an earlier intraday decline that saw The Sandbox decline as much as 5.9% over a 24-hour period ending this morning.

The Sandbox has been one of the higher-beta cryptocurrencies of late, surging in late 2021 as investors sought metaverse-related assets. Accordingly, during the recent market-driven declines tied to macro risks, The Sandbox has underperformed.

This morning, investors appear to be taking a more positive view of risk assets, as bond yields declined following news that the Russia-Ukraine war might be heating up.

And news out of South Korea early this morning suggested that the country will be investing heavily in creating its own metaverse platform. A $187 million national metaverse project will be set up, something South Korea hopes will spur corporate growth domestically.

So what

Indeed, the metaverse is an interesting place for investors to focus on right now. On the one hand, they can certainly make the argument that metaverse stocks and cryptocurrencies both likely appreciated far too rapidly, relative to their long-term growth prospects. Accordingly, this breather can be viewed as one that has been necessary, from a fundamentals standpoint.

On the other hand, the massive corporate (and now government) investment in this space is one that has many investors excited. This news coming out of South Korea might renew interest among many investors who have put blockchain-based metaverse projects on the back burner.

Now what

There’s not much investors can control when it comes to the macro environment. Yes, risk assets are rallying once again today amid lower bond yields. However, the roller coaster ride we’ve been on in recent months appears to be far from over. Accordingly, those looking at any high-beta asset, such as The Sandbox, should be aware of the inherent risks tied to volatility, particularly over the near term.

However, from a longer-term perspective, there is a lot to like about the fact that big money continues to flow into the metaverse. Capital flows matter, and today’s news might have sparked some renewed interest among dormant investors.

The metaverse is a growth area (both within and outside of the crypto world) that I think has legs. Accordingly, The Sandbox is a top metaverse crypto project investors might want to put on their watch list.

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

The post Why the Sandbox cryptocurrency went from red to green today appeared first on The Motley Fool Australia.

More reading

• Real-world conflict hits the virtual world, metaverse cryptocurrencies plunge 12%
• 3 ways to stake your claim to the $30 trillion Metaverse
• Meta’s metaverse losses pour cold water on these 3 cryptocurrencies

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

 

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

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

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

Stock markets remained volatile on Monday. However, the Nasdaq Composite (NASDAQINDEX: .IXIC) in particular remained resilient even in the face of ongoing geopolitical pressure. After having opened down around 1%, the Nasdaq bounced back to post gains briefly during the morning and was roughly unchanged as of 12:30pm ET.

There were a couple of strong stocks that helped bolster the Nasdaq overall. Tesla (NASDAQ: TSLA) shares regained some of their lost ground from last week, as some bearish stock analysts had a slightly less pessimistic view of the electric vehicle (EV) pioneer’s longer-term prospects.

Meanwhile, Coinbase Global (NASDAQ: COIN) gained ground despite some cautionary comments from Wall Street, as the cryptocurrency universe recovered from some of its recent losses.

Tesla moves out of the slow lane

Shares of Tesla gained more than 6% early Monday afternoon. The Elon Musk-led automaker didn’t exactly earn positive comments from analysts, but a slightly less negative view was enough to give shareholders the inspiration they needed.

Analysts at Bernstein haven’t had a favorable view of Tesla’s prospects, and the fact that they kept their underperform rating on the stock shows they haven’t dramatically changed that view. Nevertheless, Bernstein did boost its price target on the stock by 50%, resetting its expectations from $300 per share to $450.

The move higher in Tesla’s stock also came amid news that Japanese battery producer Panasonic would set up a factory to boost the production of its high-capacity lithium-ion batteries. Tesla intends to use Panasonic’s 4680 model battery when it’s available, and the Japanese producer hopes to have the factory up and making batteries by 2023 or 2024.

Tesla’s stock has seen a big pullback as investors have lost confidence in high-growth stocks more generally. However, demand for its vehicles remains robust and seeing a key battery supply-chain issue move toward resolution should help bolster the bullish case for the EV maker.

Coinbase rises on crypto revival

Meanwhile, shares of Coinbase Global were up nearly 5%. The cryptocurrency exchange provider benefited from some rebounds in digital asset prices following a big swoon last week.

Most major crypto prices were well off their lows on Monday. Bitcoin (CRYPTO: BTC) moved higher by 5% to get close to the $41,000 mark. Ethereum (CRYPTO: ETH) rebounded to $2,800, and the smaller but still prominent crypto asset Terra (CRYPTO: LUNA) saw double-digit percentage gains.

Even with the gains, Coinbase remains nearly 50% below its highs. Yet that’s not entirely inconsistent with the crypto market more broadly, as Bitcoin, Ether, and other digital assets are far lower than their highest levels as well.

In the long run, Coinbase is looking to diversify its business to deemphasize the importance of trading activity and instead participate in broader cryptocurrency trends, such as decentralized blockchain technology, non-fungible tokens, and improved wallet technology. If those efforts are successful, then Coinbase could evolve into a more reliable generator of revenue and income even when crypto markets aren’t booming.

Gains from individual stocks like Coinbase and Tesla won’t be enough by themselves to prop up the Nasdaq. However, it’s comforting to remember that even when broader market measures aren’t showing big gains, you can still find some businesses that are producing powerful results and rewarding their shareholders.

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

The post Tesla, Coinbase help the Nasdaq hold its ground Monday appeared first on The Motley Fool Australia.

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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin, Coinbase Global, Inc., Ethereum, Terra, and 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.

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

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

Since peaking in November, the tech-heavy Nasdaq Composite has dropped nearly 15%, putting the index in correction territory. And many individual stocks have fallen much further. For instance, shares of DocuSign (NASDAQ: DOCU) and Zoom Video Communications (NASDAQ: ZM) have dropped 63% and 78%, respectively, from their highs, as Wall Street continues to weigh the impact of high inflation and potential interest rate hikes on corporate profitability.

Many investors have also categorized DocuSign and Zoom as “pandemic stocks,” citing slowing revenue growth as cause for alarm. But, arguably, nothing could be further from the truth. Both businesses play an important role in digital transformation, and their services should only become more valuable in the years ahead. Better yet, both stocks look relatively cheap right now.

Here’s what you should know. 

1. DocuSign

Agreements are an essential part of any business. Organizations form agreements with customers, employees, and partners, but traditional paper-based processes — such as printing, signing, and taking action on a physical document — are slow, costly, and prone to errors. With its Agreement Cloud, DocuSign aims to accelerate and simplify workflow by digitizing and automating the agreement process. Its platform spans over a dozen applications, and it integrates with over 350 other technologies.

At its core is DocuSign eSignature, a product that allows documents to be signed in a digital, secure, and legally valid manner, on virtually any device. But the company’s portfolio also includes tools for automatic contract generation, AI-powered analytics and risk scoring, and payment collection. Collectively, those tools help clients work more quickly and efficiently.

Founded in 2003, DocuSign is a pioneer in the e-signature industry, and the company has parlayed its first-mover status into a robust competitive edge. DocuSign ranks as the No. 1 e-signature tool, holding over 70% market share, and its platform boasts a net promoter score (NPS) of 72. For context, the NPS is designed to measure the customer experience, and 50 is an impressive score, but an NPS of 70 (or higher) is considered world class. 

Not surprisingly, DocuSign’s strong competitive position and excellent rapport with customers have fueled impressive growth. Over the past year, the company’s customer base expanded 34% to 1.1 million; revenue soared 51% to $2 billion; and free cash flow skyrocketed 125% to $418.7 million. More importantly, management puts its addressable market at $50 billion, meaning DocuSign still has plenty of room to grow. And with the stock trading at 11.4 times sales — significantly cheaper than its three-year average of 22 times sales — now could be a good time to buy a few shares.

2. Zoom Video Communications

Zoom became a household name during the pandemic. Its core product, videoconferencing app Zoom Meetings, helped socially distanced friends and families stay in touch, while allowing students and employees to learn and work remotely. However, Zoom is more than a videoconferencing application; it’s a communications company, and its platform also includes a cloud-based phone system (Zoom Phone) and a software-based collaboration suite for hybrid workforces (Zoom Rooms). 

While some employees have already returned to the office, remote work is likely here to stay. In fact, research firm Gartner believes that 48% of employees will work remotely at least part time in a post-COVID world, up from 30% prior to the pandemic. And Gartner says that by 2024 just 25% of enterprise meetings will take place in person, down from 60% in 2019. Both of those trends are good news for Zoom and its shareholders.

Better yet, Zoom is actually becoming more popular. In the videoconferencing space, the company captured 49% market share in 2021, up from 26% in 2020. Even more impressive, Zoom is actually the fifth most popular enterprise application of any kind, according to Okta‘s 2022 Business at Work report.

In the most recent quarter, Zoom hit 512,100 customers, up 18%. And the company has kept its expansion rate above 130% for the last 14 quarters, meaning the average customer consistently spends 30% more. Fueled by that stickiness, revenue soared 100% to $3.9 billion over the past year, and free cash flow rose 59% to $1.7 billion. More importantly, management puts its market opportunity at $91 billion by 2025, leaving plenty of room for future growth. And with the stock trading at 9.7 times sales — near its cheapest valuation since going public in 2019 — now could be a good time to take a closer look at this beaten-down tech company. 

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

The post Market correction: 2 top tech stocks down 63% and 78% appeared first on The Motley Fool Australia.

More reading

• Lithium bonanza! Broker says the Allkem (ASX:AKE) share price could double
• These were the best performing ASX 200 shares in February
• These were the worst performing ASX 200 shares in February
• Will ASX REITs get smashed by rising interest rates?
• 2 great ASX shares to buy in March 2022: experts

Trevor Jennewine owns Okta. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended DocuSign, Okta and Zoom Video Communications. The Motley Fool Australia has recommended Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

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

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The Allkem Ltd (ASX: AKE) share price could be great value and destined to climb materially higher.

That’s the view of the team at Bell Potter, which has spoken very positively about the lithium miner today.

Why is the Allkem share price great value?

In response to the lithium miner’s half year results on Monday, Bell Potter has reiterated its buy rating and lifted its price target to $18.05.

Based on the current Allkem share price of $9.07, this implies potential upside of almost 100% over the next 12 months.

The broker highlights that Allkem’s first half earnings were better than it was forecasting. It explained: “AKE reported underlying 1H FY22 EBITDA of US$98m (BP est. US$83m) and NPAT of US$57m (BP est. US$44m).”

Why is the broker so positive?

Bell Potter notes that Allkem is expecting lithium prices to improve further in the second half. This has led to the broker upgrading its earnings forecasts accordingly.

In addition, its analysts like the company due to its production growth potential, which will allow it to benefit greatly from these high lithium prices.

The broker commented: “AKE is a go-to stock for multi-project exposure to lithium markets. AKE will realise significantly higher prices from 2022, driving material operating cash flow growth. Looking ahead, AKE has a portfolio of growth projects to materially lift production over the next three years.”

“Naraha will commence conversion of primary grade lithium carbonate into 10ktpa battery grade lithium hydroxide by mid-2022. At Olaroz, an additional 25ktpa LCE capacity will be commissioned from 2H 2022, lifting capacity at this asset to over 40ktpa. Construction of Sal de Vida Stage 1 at around 11ktpa LCE has commenced for first production from 2023. In aggregate, we expect AKE’s equity share of production to lift from 33kt LCE in FY21 to over 50ktpa LCE by FY24,” it added.

The post Lithium bonanza! Broker says the Allkem (ASX:AKE) share price could double appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 (ASX:XJO) midday update: Zip to buy Sezzle for $491m, GrainCorp storms higher
• Allkem (ASX:AKE) share price higher amid results and ‘surging demand for lithium’
• Analysts are tipping massive upside potential for these ASX growth shares
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Motley Fool contributor James Mickleboro owns Allkem. 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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Despite battling tough trading conditions, the S&P/ASX 200 Index (ASX: XJO) managed to record a decent gain last month. The benchmark index rose 1.1% to end the period at 7,049.1 points.

While a number of shares climbed higher with the market, some recorded bigger gains than others. Here’s why these were the best performing ASX 200 shares in February:

NRW Holdings Limited (ASX: NWH)

The NRW share price was the best performer on the ASX 200 last month with a 37.6% gain. Investors were buying this mining contractor’s shares following the release of a better than expected half year result. For the six months ended 31 December, NRW delivered a 26% increase in operating earnings to $74.6 million. In light of this strong form, management has updated and narrowed its full year guidance towards the top end of its previous range.

Cimic Group Ltd (ASX: CIM)

The Cimic share price wasn’t far behind with a gain of 36% in February. This strong gain was driven by news that the engineering company has received a hostile takeover approach. According to the release, Cimic’s majority shareholder, HOCHTIEF, is planning to make an off-market takeover offer of $22 cash per share.

Sims Ltd (ASX: SGM)

The Sims share price was on form and charged 26.9% higher over the month. Investors were buying the scrap metal company’s shares following the release of a strong half year result. For the first half, Sims reported a 74% increase in revenue to $4,265 million and a 541% jump in underlying EBIT to $361.7 million. Management advised that this was driven by “higher sales volumes and higher material prices, combined with disciplined margin management.”

Nufarm Ltd (ASX: NUF)

The Nufarm share price was a strong performer and rose 25.1% over the period. This agricultural chemicals company’s shares were in demand with investors in February following the release of a very upbeat trading update. According to the release, Nufarm’s first quarter revenue grew 36% over the prior corresponding period. Management advised that this was supported by favourable weather conditions.

The post These were the best performing ASX 200 shares in February appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares in February
• Will ASX REITs get smashed by rising interest rates?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• Why is the Webjet (ASX:WEB) share price having such a lousy start to the week?

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

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The S&P/ASX 200 Index (ASX: XJO) overcame tough trading conditions to record a decent gain in February. The benchmark index rose 1.1% to end the period at 7,049.1 points.

Unfortunately, not all shares were able to climb higher with the market. Here’s why these were the worst performing ASX 200 shares last month:

Boral Limited (ASX: BLD)

The Boral share price was the worst performer on the ASX 200 last month with a 39% decline. However, this decline is a touch misleading as it wasn’t driven by bad news. This decline actually reflects the building materials company returning a total of $3 billion to shareholders following a series of asset sales. Boral’s total cash return of $2.72 per share comprises a $2.65 per share capital reduction and an unfranked dividend of 7 cents per share.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price was out of form again and sank 30% in February. This brings the sports betting company’s 12-month decline to 75%. Investors were selling the company’s shares following weakness in the tech sector and particularly the sports betting industry. The latter was driven by a disappointing update from rival DraftKings. Its shares crashed after revealing a loss of US$326 million for the fourth quarter. It also warned that it was likely to make a loss of US$1 billion in 2022 due largely to marketing costs.

Zip Co Ltd (ASX: Z1P)

The Zip share price wasn’t far behind with a 25% decline last month. Investors were selling the buy now pay later (BNPL) provider’s shares amid weakness in the industry and in response to its half year update. That update revealed a greater than expected loss for the first half of FY 2022. Speculation that a capital raising was imminent also weighed on sentiment.

Appen Ltd (ASX: APX)

The Appen share price was sold off again and tumbled 25% in February. Investors were selling down the artificial intelligence data services company’s shares following the release of its full year results. Appen reported a 3% increase in underlying EBITDA to US$77.7 million in FY 2021, which fell short of its revised guidance. Management also didn’t provide any guidance for FY 2022, which didn’t help sentiment.

The post These were the worst performing ASX 200 shares in February appeared first on The Motley Fool Australia.

More reading

• Will ASX REITs get smashed by rising interest rates?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• Why is the Webjet (ASX:WEB) share price having such a lousy start to the week?
• Leading brokers name 3 ASX shares to buy today

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 Appen Ltd, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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ASX shares, like the rest of the world’s, are down a shocking amount for the year.

The S&P/ASX 200 Index (ASX: XJO) is now 7.8% lower than when 2022 started.

The big fear is that interest rates will rise very soon.

Investors are worried that central banks will be forced to hike rates due to persistent inflation, which will only be exacerbated by the war in Ukraine.

One type of investment that’s arguably a little bit different to other ASX shares is real estate investment trusts (REITs).

Since these are investments in real estate, they’re not really like other shares, which represent ownerships of businesses.

So can real estate fare any better in such anxiety-ridden times?

Shaw & Partners portfolio manager James Gerrish was recently asked this very question from a punter.

Not all REITs were created equal

Speaking generally, Gerrish said rising rates are a negative influence on the value of REITs.

“However, they will impact different REITs in different ways,” he told his Market Matters newsletter.

But if one drills down into individual trusts, they all have very different characteristics.

“Goodman Group (ASX: GMG) will grow earnings at 20% this year so rising rates will influence them less as a proportion of their earnings,” said Gerrish.

“The Charter Hall Long WALE REIT (ASX: CLW) will be more impacted because their growth is slower and their lease terms longer. It’s more like a longer-dated bond.”

Goodman shares have fallen 17% for the year, while Charter Hall Long WALE has remained flat. The latter is paying out a 5.45% dividend yield.

Another example that could be less impacted by rate hikes is National Storage REIT (ASX: NSR).

“National Storage, that we own, has a large tailwind from high demand and tight supply of storage which is pushing up storage rates — and therefore earnings.”

Shares for National Storage have dipped 5.6% for the year, while paying out a 3.46% dividend yield.

REITs could be oversold

Gerrish feels like investors may have overreacted during this year’s market dip.

“I think recently the market became more concerned about rates and their impact on REITs than is warranted,” he said.

“The sell-off in the property space over the past few weeks or so is a buying opportunity generally.”

The post Will ASX REITs get smashed by rising interest rates? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• Why is the Webjet (ASX:WEB) share price having such a lousy start to the week?
• These 3 ASX 200 shares are topping the volume charts on Monday
• 5 ASX 200 shares trading ex-dividend today

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.

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This month could be a smart time to hunt for ASX share opportunities. Experts have identified two stocks that have the potential to deliver good returns in 2022.

Share prices are always moving, but experts believe that some of the recent declines have opened up strong opportunities:

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price has fallen more than 50% over the past six months. Since the start of the year it has declined by 37%.

This business sells over 200,000 homewares and furniture products from hundreds of suppliers. The company uses a drop-shopping model where products are sent directly to customers by suppliers, enabling faster delivery times and reduces the need to hold inventory, allowing for a larger product range. It also means Temple & Webster can operate with negative working capital.

Temple & Webster is building out its own private label range, which comes with higher gross profit margins. The business continues to offer more products. It recently announced that it was working on growing in the home improvement sector – that includes things like plumbing supplies, painting, tools, flooring, garden and landscaping, window furnishings and so on.

The ASX share is growing quickly, which is helping long-term operating leverage and helps it invest more into marketing, technology and the customer experience. A key focus is the AI interior design service, as well as augmented reality (AR) so that the customer can see the product in their space.

Management think that Aussies will continue to do more online shopping. In 2020, the US had online penetration in the furniture and homewares market of 25.3%. That compared to between 7% to 9% for Australia in 2020. The suggestion is that Australia’s online penetration is headed that way.

UBS thought the Temple & Webster HY22 result was impressive, with revenue growth of 46%. It rates it as a buy, with a price target of $11.80.

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel Management share price has fallen 10% over the last couple of weeks. But UBS is a fan of the business, with a buy rating and a price target of $28.20. It thought the business did well in the recent result despite the Omicron variant impacts and that the FY22 half-year result showed a number of positives.

The ASX share reported that it made an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $18.2 million in the first half of FY22, compared to a loss of $15.2 million in the prior corresponding period.

There was positive underlying EBITDA in North America, Europe and ANZ regions. The Europe EBITDA was stronger than the FY20 first half, which was before COVID.

Corporate Travel Management said that its expert service and proprietary technology value proposition is more relevant in a complex recovery environment. It has seen record client wins thanks to “enhanced reputation”.

HY22 revenue was up 120% to $163 million, which was only 27% below pre-COVID revenue despite Omicron impacts.

Management are expecting a significant ramp-up of activity in regions where travel restrictions are relaxed or removed. The UK and USA are experiencing a rapid rebound in February 2022 as restrictions have been lifted.

It’s expecting underlying EBITDA to continue to build during February and March as organisations return to working in offices. The ASX share continues to assess acquisition opportunities.

UBS thinks the Corporate Travel Management share price is valued at 24x FY23’s estimated earnings.

The post 2 great ASX shares to buy in March 2022: experts appeared first on The Motley Fool Australia.

More reading

• Why is the Webjet (ASX:WEB) share price having such a lousy start to the week?
• These are the 10 most shorted ASX shares
• 2 top ASX shares this broker loves
• 2 beaten-up ASX shares to buy for the long-term: experts
• These are the 10 most shorted ASX shares

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Corporate Travel Management Limited and Temple & Webster Group 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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As we wave goodbye to summer and cap off another earnings season, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to buy in March. Here is what the team came up with.

Tristan Harrison: Adore Beauty Group Ltd (ASX: ABY)

The Adore Beauty share price has fallen by around 47% since the start of 2022.

However, the company continues to grow. Its FY22 half-year result showed record revenue, with growth of 18% to $113.1 million. Active customers also rose 13% to 876,000. Meanwhile, annual revenue per active customer leapt 5% to $224. Returning customers also grew by 56%.

Adore Beauty’s profit margin increased by 0.6 percentage points to 33.1%, showing increased profitability. And, the online retailer is investing for growth. Its ‘owned marketing channels’ are also helping with marketing costs.

UBS rates Adore Beauty as a buy and expects double-digit revenue growth over the medium term. The broker has a price target of $4.70 on Adore shares, more than 120% above yesterday’s share price of $2.12 at the market close.

Motley Fool contributor Tristan Harrison does not own shares of Adore Beauty Group Ltd.

Sebastian Bowen: Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the oldest ASX 200 blue-chip shares on the market. It is the company behind iconic retailers Bunnings, OfficeWorks, and Kmart. It also owns and has investments in a slew of other diversified businesses.

Historically, Wesfarmers is an ASX share that doesn’t seem to go through price corrections too often. Yet that is what we’ve seen in recent months. Since August last year, this conglomerate has lost close to 30% of its value.

This, in turn, has pushed the company’s fully franked dividend yield to more than 3.5% on recent pricing. As such, Wesfarmers shares might well be worth a look at in March.

Motley Fool contributor Sebastian Bowen does not own shares of Wesfarmers Ltd.

Mitchell Lawler: Steadfast Group Ltd (ASX: SDF)

Steadfast is Australia’s largest general insurance broker and underwriting agency network. In simple terms, that means it acts as the broker – not the insurer — selling insurance onto predominantly small-to-medium-sized enterprises.

This $4.59 billion company has had a slow start to the year, with Steadfast shares losing around 12%. However, the company provided solid numbers for the first half of FY22. These included underlying revenue increasing by 19% and net profit after tax (NPAT) surging by around 43% to $104.9 million.

In further positive news, Steadfast’s full-year guidance was bumped up to between $163 million and $170 million.

Motley Fool contributor Mitchell Lawler does not own shares of Steadfast Group Ltd.

Bernd Struben: Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is an iconic nursery retailer with 64 stores across Australia. The company plans to open more outlets over the coming months, forecasting it will eventually have more than 100 in Australia.

The company’s expansion into New Zealand has been delayed by the pandemic, with the first Kiwi store now expected to open in 2023.

Atop the potential from its ongoing store rollout, Baby Bunting’s diverse product offerings arguably present a decent-sized moat for would-be competitors. The company recently reported strong half-year results, with revenues and profits both up.

Baby Bunting also pays a 2.9% dividend yield, fully franked.

Motley Fool contributor Bernd Struben does not own shares of Baby Bunting Group Ltd.

Aaron Teboneras: Bubs Australia Ltd (ASX: BUB)

According to Citi, the Bubs share price represents a significant buying opportunity at its current level.

The infant formula company released its 2022 financial year half-year results last Wednesday. Investors were clearly impressed, sending the Bubs share price almost 5% higher on the day.

In the release, Bubs management noted it continues to be the fastest-growing infant formula manufacturer across key retail chains. These include Chemist Warehouse, Coles Group Ltd (ASX: COL), and Woolworths Group Ltd (ASX: WOW).

Following the record financial performance, Citi analysts raised their 12-month price target for Bubs shares by 7.4% to 73 cents.

Based on the Bubs share price of 42.5 cents at Monday’s close, this represents a potential upside of almost 70%.

Motley Fool contributor Aaron Teboneras does not own shares of Bubs Australia Ltd.

Zach Bristow: G8 Education Ltd (ASX: GEM)

The ASX has copped a hammering in 2022 – not G8 Education shares though.

Shares in G8 have thrust from a low of $1.04 in late January to close on Monday at $1.29 apiece, a gain of 24%. This also puts the G8 Education share price up by 14% for the year so far.

The company owns and operates childcare centres in Australia and Singapore. For the first half of FY22, operating revenue was up by 11% to $866 million, and net profit after tax (NPAT) was $46 million – up from a loss of $189 million last year.

EverBlu Capital is bullish on G8 Education shares and reckons valuations are attractive right now. The broker values G8 at $2.33 per share, suggesting a potential upside of around 80% at the time of writing.

Motley Fool contributor Zach Bristow does not own shares of G8 Education Ltd.

Brendon Lau: APM Human Services International Ltd (ASX: APM)

There appears to be significant upside to the APM share price following the company’s strong first-half result and upgraded profit guidance, according to Goldman Sachs. Investors appeared to agree, sending the company’s shares 11% higher when its results were released last Friday.

APM’s guidance upgrade was driven by the company’s recent acquisitions but Goldman believes the upgrade might be too conservative. The broker is recommending APM shares as a buy with a 12-month price target of $4 per share. Based on the APM share price of $2.90 at Monday’s close, this represents a possible upside of almost 38%.

Motley Fool contributor Brendon Lau does not own shares in APM Human Services International Ltd.

James Mickleboro: Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price was a very strong performer in February, climbing by almost 15%. But it may not be too late to invest in this fashion jewellery retailer in March.

That’s the view of the team at Morgans, which has put an add rating and $24.00 price target on the company’s shares. Based on the Lovisa share price of $19.94 at Monday’s close, this represents further potential upside of almost 20%.

Morgans was very impressed with Lovisa’s performance during the first half and is confident this positive form will continue in the future. In fact, under the leadership of Lovisa’s new CEO, Victor Herrero, the broker sees scope for Lovisa to become “a global force” and “one of the biggest success stories in Australian retail.”

Motley Fool contributor James Mickleboro does not own shares of Lovisa Holdings Ltd.

The post Top ASX shares to buy in March 2022 appeared first on The Motley Fool Australia.

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• Buy these 2 impressive ASX shares in March 2022: experts
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• Analysts are tipping massive upside potential for these ASX growth shares
• Broker says Lovisa (ASX:LOV) could become a ‘global force’

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Steadfast Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited, BUBS AUST FPO, Baby Bunting, Lovisa Holdings Ltd, and Steadfast Group 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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Are you looking for dividend shares to buy? If you are, then you might want to look at the shares listed below that have been named as buys.

Here’s why these ASX 200 dividend shares could be worth considering right now:

Centuria Industrial REIT (ASX: CIP)

Centuria Industrial is the largest domestic pure play industrial REIT on the Australian share market.

Management notes that the company’s portfolio of high-quality industrial assets is situated in urban infill locations throughout Australia and is underpinned by a quality and diverse tenant base.

These properties are certainly in demand with tenants. For example, last month the company reported an 8.9-year weighted average lease expiry with a 99.2% portfolio occupancy. This supported strong funds from operation (FFO) and allowed management to upgrade its full year guidance.

This result went down well with the team at Morgan Stanley. In response, the broker retained its overweight rating and lifted its price target to $4.35.

As for dividends, Morgan Stanley is forecasting dividends per share of 18.1 cents per share in FY 2022 and FY 2023. Based on the current Centuria Industrial share price of $3.75, this equates to yields of 4.8%.

Telstra Corporation Ltd (ASX: TLS)

This telco giant could be a top option for income investors. Like Centuria Industrial, it released a strong half year update last month. In fact, Telstra revealed underlying earnings growth for the first time in years thanks to the success of its T22 strategy.

The good news for investors now is that Telstra will soon embark on its T25 strategy. While T22 was about transforming the company, T25 has been designed to underpin solid earnings growth. This could bode well for dividends in the future.

In the meantime, though, the team at Morgans is forecasting fully franked dividends per share of 16 cents in FY 2022 and FY 2023. Based on the current Telstra share price of $3.96, this will mean yields of 4%.

Morgans also sees decent upside for Telstra’s shares. It has an add rating and $4.56 price target on its shares.

The post Analysts name 2 ASX 200 dividend shares to buy in March appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Monday
• 2 top ASX dividend shares with 4%+ yields
• 2 buy-rated ASX dividend shares for income: experts
• These 3 ASX 200 shares are topping the volume charts this Friday
• Telco blip: Telstra (ASX:TLS) share price slips on TPG deal scrutiny

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

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