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Exchange-traded funds (ETFs) could be a compelling way for investors to gain access to some great businesses but to do it in a diversified way.

Some ETFs are focused on a particular share market – like the Australian share market or European share market. But, there are other options that give the opportunity to invest in certain sectors or themes.

With that in mind, these two ETFs could be long-term options:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This is an ETF that is focused on the global share market. It has businesses from many different “major developed countries” in the portfolio. The US does represent 70% of the portfolio, though many US companies do earn international profit as well.

Readers may have heard of many of the biggest holdings in the portfolio including: Apple, Microsoft, Alphabet, Amazon.com, Tesla, Nvidia and Meta Platforms (formerly Facebook).

It’s not all tech giants – other US names include JPMorgan Chase, Berkshire Hathaway, Proctor & Gamble, Home Depot, Visa and Mastercard.

However, there are lots of non-US businesses in the portfolio too such as Nestle, ASML, Roche, LVMH, Toyota, Shell, Novartis, AstraZeneca, Novo Nordisk and Royal Bank of Canada.

There is a total of around 1,500 businesses in the portfolio.

The VGS ETF offers a globally diversified portfolio for an annual management fee cost of just 0.18%.

Past performance is not a guarantee of future results, however over the past five years the Vanguard MSCI Index International Shares ETF has produced an average return per annum of 15.2%.

However, the dividend yield of the ETF is just 1.6% according to Vanguard.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

This ETF is much more concentrated than the Vanguard. It has a total of 26 positions that give investors exposure to the global gaming sector.

VanEck says that this industry is a dynamic growth opportunity, which gives investors the ability to invest in the future of gaming. The companies are positioned to benefit from the increasing popularity of video games and eSports.

Each of the businesses in the portfolio generate a significant portion of their revenue from the video gaming sector.

In terms of the biggest positions in the portfolio, these are some of the names: Tencent, Activision Blizzard, Nintendo, Nvidia, Advanced Micro Devices, Netease, Electronic Arts, Take-Two Interactive, Nexon and Bandai Namco. Ubisoft and Zynga are two of the other positions.

There is a mixture between countries – this ETF is much less focused on the US than the VGS ETF. The US is 40.4% of the portfolio, Japan is a 21.4% weighting, China is 20.1%, South Korea is 4.6%, Singapore is 4.2% and so on.

Since listing in September 2020, the ESPO ETF has produced an average return per annum of 8.5%. However, the index that it tracks has produced an average return of 29% per annum over the last five years. Past performance is not a reliable indicator of future performance though.

The post 2 excellent ETFs with compelling potential appeared first on The Motley Fool Australia.

More reading

• 3 excellent ETFs that you need to know about
• What’s going so wrong for ASX ETFs in 2022 so far?
• 2 quality ASX tech shares for investors after the selloff
• Is Vanguard MSCI Index International Shares ETF (ASX:VGS) an excellent investment for the long-term?
• 3 exciting ETFs for ASX investors next week

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Beach Energy Ltd (ASX: BPT)

According to a note out of Macquarie, its analysts have downgraded this energy producer’s shares to an underperform rating but lifted their price target to $1.50. This follows the release of a half year result that fell short of Macquarie’s estimates. And while the broker has upgraded its earnings forecasts and price target to reflect production growth, it isn’t in a rush to change its rating. Macquarie believes investors would be better off with other options in the sector that offer more value for money. The Beach share price ended the week at $1.49.

Fortescue Metals Group Limited (ASX: FMG)

A note out of UBS reveals that its analysts have retained their sell rating and cut their price target on this mining giant’s shares to $16.30. While UBS acknowledges that Fortescue delivered a strong first half result, it doesn’t appear confident on the second half and beyond. This is due to inflationary pressures and concerns that iron ore demand could soften as Chinese construction slows and supply improves. UBS also sees risks with the Iron Bridge project. The Fortescue share price was fetching $19.85 at Friday’s close.

Woolworths Group Ltd (ASX: WOW)

Analysts at Credit Suisse have retained their underperform rating and cut their price target on this retail giant’s shares to $30.87. Ahead of the company’s half year results, the broker has reduced its estimates and suspects that management may do the same with its guidance. Credit Suisse feels that with competition increasing, the company will put customers ahead of shareholders. The Woolworths share price ended the week at $34.01.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• Is the Woolworths (ASX:WOW) share price a buy or sell right now?
• These were the worst performers on the ASX 200 last week
• Why Fortescue, Goodman, Inghams, and QBE shares are dropping
• What is a supercycle and are ASX 200 mining shares at the start of one?
• Dividends down, Fortescue (ASX:FMG) Future Industries spending up. Here’s the miner’s justification

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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Is the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price worth buying for its dividend yield?

A lot of investors do think that ANZ shares are a buy. Since 7 February 2022, ANZ has risen by 6%.

How big is the dividend going to be at the current ANZ share price?

The bank is expected to pay a sizeable annual dividend in FY22. Commsec numbers imply that the grossed-up dividend yield will be 7.3%.

Some analysts have very similar dividend expectations. Morgan Stanley also reckons that ANZ will pay a grossed-up dividend yield of 7.3%. Ord Minnett also believes that ANZ will pay a grossed-up dividend yield of 7.3%.

One of the biggest estimates of the dividend from ANZ is from Citi – the grossed-up dividend yield could be 7.8%.

So, lots of estimates for the ANZ dividend yield are somewhere in the 7s.

Latest performance

Investors often like to judge the ANZ share price on the latest comments regarding profit and performance. For ANZ, it gave a market update on 7 February 2022 for the three months to 31 December 2022.

ANZ said that the group net interest margin (NIM) was down 8 basis points for the quarter, with the underlying NIM down 5 basis points. It blamed this on structural headwinds impacting the sector.

But there may be good news ahead – the impact of rising rates, predominately in New Zealand, and recent deposit pricing changes are expected to moderate the ongoing headwinds in the second quarter.

The big four ASX bank also said that it has made solid progress in Australia to improve systems and processes for simple home loans with application times now in line with other major lenders. Last year, ANZ lost market share which is partly blamed on extended loan processing times. Efforts continue to improve response times for more complex home loan applications.

The Australian home loans balance sheet grew slightly in the first quarter of FY22. Managing attrition and margins is a key area of focus because of the high levels of refinancing activity in the sector.

Revenue within the ANZ markets business was soft in October, but performed in line in subsequent months.

‘Run-the-bank’ costs are expected to be broadly flat in the first half.

The credit quality environment has remained benign with a total provision release of $44 million during the quarter.

ANZ said its capital position continues to provide flexibility to return further surplus capital to shareholders and ANZ is considering increasing the size of the current on-market buy-back.

Is the ANZ share price a buy?

Morgan Stanley rates it as a buy, with a price target of $30. The NIM drop was a bigger decline in the latest quarter than what the broker had been expecting. But a recovery of margins, as indicated by ANZ, would be helpful.

Ord Minnett rates it as a buy, with a price target of $30.50. It sees revenue growth for ANZ. The broker prefers ANZ to Westpac Banking Corp (ASX: WBC).

However, the broker with the biggest dividend estimate, Citi, is only ‘neutral’ on the bank with a price target of $29.25.

The post Is the ANZ (ASX:ANZ) share price a buy for the 7.3% dividend yield? appeared first on The Motley Fool Australia.

More reading

• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?
• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• Own ANZ (ASX:ANZ) shares? The bank just tipped $70m into a new ‘green’ partnership
• ANZ (ASX:ANZ) shares drop amid $1bn raising: Time to buy?
• Is the ANZ (ASX:ANZ) share price in the buy zone following its Q1 update?

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 Westpac Banking Corporation. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

CSL Limited (ASX: CSL)

According to a note out of Citi, its analysts have retained their buy rating but trimmed their price target slightly on this biotherapeutics company’s shares to $335.00. This follows the release of the company’s half year results, which has eased concerns about plasma collections headwinds. Citi also notes that management has effectively upgraded its FY 2022 guidance by 5%. The CSL share price ended the week at $265.57.

Challenger Ltd (ASX: CGF)

A note out of Morgan reveals that its analysts have retained their add rating and lifted their price target on this annuities company’s shares to $7.74. This follows the release of a half year result that came in ahead of expectations. Overall, the broker was impressed with Challenger’s performance and highlights its good asset growth in both Life and Funds Management, and a broadly stable Life COE margin at an underlying level. In light of this positive form, it believes the company’s shares are trading on undemanding multiples. The Challenger share price was fetching $6.73 at the end of the week.

Goodman Group (ASX: GMG)

Another note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this integrated property company’s shares to $29.50. Citi notes that Goodman’s half year results came in ahead of its expectations. And while management has once again upgraded its guidance, the broker still believes Goodman is being conservative and expects the company to outperform it. The Goodman share price closed the week at $23.06.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• 3 of the best results on the ASX 200 last week
• Why Fortescue, Goodman, Inghams, and QBE shares are dropping
• Brokers name 3 ASX shares to buy today
• Why is the Challenger (ASX:CGF) share price outperforming this week?
• Here are the top 10 ASX shares 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 CSL Ltd. The Motley Fool Australia has recommended Challenger 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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Are you looking for dividend shares to add to your income portfolio next week? If you are, then the two listed below could be worth considering.

These dividend shares have been rated as buys and tipped to provide income investors with attractive yields in the coming years. Here’s what you need to know about them:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is Adairs. It is a leading homewares and furniture retailer with a presence online and offline through three brands. These are the eponymous Adairs brand, its online-only brand Mocka, and the newly acquired Focus on Furniture brand.

And while trading conditions have been tough due to lockdowns, the team at Morgans thinks investors should stick with the company.

Its analysts have recently put an add rating and $3.70 price target on its shares. Morgans is also forecasting fully franked dividends of 19 cents per share in FY 2022 and 23 cents per share in FY 2023. Based on the current Adairs share price of $3.11, this will mean yields of 6.1% and 7.4%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share that could be in the buy zone is NAB. This is due to its strong position in business banking, the positive outlook for interest rates, and its acquisition of Citi’s Australian consumer business. The latter fills a gap in its offering which bodes well for its future growth.

Bell Potter remains very positive on NAB and has a buy rating and $32.00 price target on its shares.

The broker is also expecting attractive yields in the coming years, with fully franked dividends per share of 132.5 cents in FY 2022 and 134.5 cents in FY 2023. Based on the current NAB share price of $30.58, this will mean yields of 4.3% and 4.4%, respectively, over the next couple of years.

The post Why NAB (ASX:NAB) and this ASX dividend share could be buys appeared first on The Motley Fool Australia.

More reading

• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?
• Why did the NAB (ASX:NAB) share price smash 4-year highs today?
• Own NAB (ASX:NAB) shares? Here’s why the bank’s carbon credits scheme is attracting global interest
• 2 underrated ASX dividend shares expected to unleash big payouts in FY23
• This expert says now is the time to buy ASX dividend shares. Here’s why

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 ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS 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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Last week earnings season went up a gear with a number of popular S&P/ASX 200 Index (ASX: XJO) shares reporting their latest numbers.

Among the highlights were the three results summarised below. Here’s what they reported:

CSL Limited (ASX: CSL)

The CSL share price charged higher last week after its half year results impressed the market. The biotherapeutics giant reported a 5.3% increase in revenue to US$6,041 million but, as was widely expected, a 5% constant currency decline in net profit after tax to US$1,722 million. The latter was driven by plasma collection headwinds, which weighed on margins. However, management spoke positively about the outlook for collections and effectively upgraded its profit guidance for FY 2022 by 5%.

South32 Ltd (ASX: S32)

The South32 share price pushed higher after the market responded positively to this mining giant’s half year results. Thanks to rising commodity prices and robust production, the miner reported a 32% increase in revenue to US$4,602 million and a massive 638% jump in its underlying earnings to US$1,004 million. This allowed South32 to pay a fully franked 8.7 US cents per share interim dividend. Another highlight from the result was its strong free cash flow from operations, which came in at US$942 million. This has some analysts speculating that its strong cash generation could support further M&A activities in the near future.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price was on form last week after it released its half year results. While the wine giant continues to be impacted by being shut out of Mainland China, management appears confident that the tide is turning. In respect to the result, Treasury Wine reported a 10.1% decline in net sales revenue to $1,267 million and a 6.7% decline in EBITS to $262.4 million. As for the future, management has advised that it is now shifting its focus from “recovery and restructuring” to one of “growth and innovation.”

The post 3 of the best results on the ASX 200 last week appeared first on The Motley Fool Australia.

More reading

• Morgans names 2 ASX 200 dividend shares to buy now
• Brokers name 3 ASX shares to buy today
• Why Challenger, CSL, NRW, and Woodside shares are pushing higher
• The ‘tide is beginning to turn’: CSL (ASX:CSL) share price tipped to rise
• South32 (ASX:S32) share price jumps as profit soars

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 CSL Ltd. The Motley Fool Australia has recommended Treasury Wine Estates 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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I am the luckiest bloke in the world.

No, I didn’t win lotto.

No, I didn’t discover a long-lost mega-rich great-uncle.

I’m lucky because I won, as Warren Buffett puts it, the ovarian lottery.

I was born to wonderful parents, in a fabulous country, at an incredible time in human history. I have a terrific family and a job I love.

Maybe you think you’re luckier than me. (Perhaps you have that rich great-uncle I lack!)

I still reckon I’d come out on top. Life hasn’t always been perfect, but I’m bloody fortunate.

Maybe you haven’t been quite so lucky.

But, if so, only by the tiniest of margins.

Because I want you to think about all of the permutations that had to play out for you to be here, millions and millions of years after your very-distant earliest relatives made their way out of the primordial sludge.

Imagine if Earth hadn’t been so hospitable to carbon-based lifeforms.

You wouldn’t be here. Me either.

Imagine if the asteroid that wiped out the dinosaurs took all life with it?

Sure, new life might have formed, but your ancient bloodline would have been wiped out and, well, you wouldn’t be here.

Imagine if your great-great-great-great grandmother and grandfather hadn’t met.

There’d be no you.

And so on, through all of life’s events and circumstances, for centuries and millennia.

Seriously, the sequence of random events, near-misses, could-have-beens and never-weres is mind boggling.

The odds of you being here, now, are longer than winning the lottery.

Much longer.

And not only here, but now.

A couple of hundred years ago, your life would have been very different.

No modern technology. No old technology, either. No electricity or motorised transport.

No modern sanitation or healthcare.

95% of the jobs we do today didn’t exist.

And the 5% that did were far more difficult and far less efficient.

Sometimes, when I’m feeling like I want to take a break from modern life, the 1820s doesn’t seem too bad.

But that feeling doesn’t last long. Maybe 1 in 10 people reading this wouldn’t be here, having died in childbirth or as infants. Most of the people over, say, 65 reading this wouldn’t be here any more, either.

Our teeth would be rotten, surgery would be hit and miss and done without anaesthetic by butchers-cum-surgeons. And you’d be stuck in whatever station you were born into.

Even those with an unlucky life by modern standards would have been considered fortunate a couple of hundred years ago.

Which isn’t an excuse for us to rest on our collective laurels, by the way. While we have the resources and opportunity to make our society better, I reckon we’re morally obligated to do so.

But it’s a reminder of just how lucky we are.

We are also lucky in a different way, and one that has particular relevance to my day job: we have very good access to very well run investment markets.

The idea of stock markets goes back a few centuries. But they were relatively limited, expensive to take part in, and regulatory oversight was negligible.

Modern stock markets go back maybe 130 years or so.

And they have continued to improve.

Costs have come down. Regulation has improved. Technology has given us access to almost-instant information, shared openly and equally.

Just before I started investing, brokerage was usually over $100 per trade (via phone to a bloke – it was usually a bloke – who’d place trades for you). I got lucky, starting when online brokers had been established, and I could trade for the unheard of bargain of $30 per transaction. Still, information wasn’t universally available.

Now? Trades are close enough to free, and information is plentiful. It has literally never been easier for the average person to own shares.

And the advent of exchange-traded-funds has meant that you can, with a very, very bare minimum of knowledge and money, have access to the average market return.

Oh, and speaking of the average return, over more than a century, that’s been somewhere between 9% – 11% per annum.

Extraordinary.

(If that doesn’t sound extraordinary at first glance, check this out: a 9.6% annual return turned a hypothetical $10,000 into more than $160,000 in the last 30 years, according to fund manager Vanguard. Not bad for just leaving your investments well alone!)

But the luck doesn’t stop there.

Thanks to improvements in our society over the last century, most of us have the relatively historically unparalleled ability to save some of our incomes to invest. That wasn’t always the case for most of the country 100 years ago.

One more? I’m glad you asked.

Even if you’re struggling to find a spare zack to invest, if you’re working your employer is sending 10% of your paycheque to your nominated Super fund to build retirement wealth on your behalf.

Yes, the last few months have been rocky for many ASX investors, as volatility and uncertainty whipsaw share prices.

I’m down a decent chunk since the highs of last year.

It hurts. No-one likes losing money.

But we’ve been here before.

Remember: The ASX has never yet failed to regain and surpass its previous highs. Sure, this could be the first time… but is it likely? No, I don’t think so.

And viewed through the lens of how lucky we are to be here, now, with the opportunities and benefits that come from being an Australian in 2022… well, those short-term gyrations pretty much fade into the background, I reckon.

If you’re doing it tough right now, you have my sympathies. I hope things improve for you.

And I’m not going to make light of those struggles. They’re real and often very tough.

But if I had to face the slings and arrows of outrageous fortune… here, and now, are the best time and place to do it, I reckon.

And that’s my exhortation: don’t forget how bloody lucky we are. And don’t miss the opportunity to make the best of that luck – investing and otherwise.

Have a great weekend!

Fool on!

The post You’re far, far luckier than you think appeared first on The Motley Fool Australia.

More reading

• 3 of the best results on the ASX 200 last week
• Are these 2 top ASX growth shares buys?
• Are high lithium prices here to stay? Industry insiders say yes
• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?
• 3 small cap ASX shares with enormous upside potential

Motley Fool contributor Scott Phillips 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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Some of the leading ASX growth shares have seen their share prices dip, or plunge, since the start of the year.

This period of time could be an interesting one for investors looking for opportunities.

A business isn’t necessarily a better buy because it has fallen in price. However, for some it certainly can mean it’s better value.

With that in mind, here are two top ASX growth shares:

City Chic Collective Ltd (ASX: CCX)

City Chic is one of the world leaders when it comes to retailing plus-size clothing, footwear and accessories for women. It operates a number of brands across different markets including City Chic, Evans and Avenue.

The business continues to see rapid sales growth. In the 26 weeks to 26 December 2021, City Chic’s sales revenue rose by 49.8% to $178.3 million. The Americas are particularly driving this strength.

ANZ sales rose 14% to $80.8 million and Americas revenue increased by 62% to $77.2 million. ANZ was hurt by lockdowns, which closed stores. The Americas’ growth was attributed to re-engaging the significant Avenue customer base, with Avenue.com trading materially above pre-acquisition levels. The City Chic USA website is also performing strongly.

Global supply chain pressures continue, driven by freight capacity shortages and delivery delays coming out of key areas. But, to combat this, the company invested in additional inventory. This has supported sales.

The business continues to expand organically and with acquisitions. It recently acquired the customer lists, brand and URL of CoEdition – a USA plus-size online marketplace.

Ord Minnett rates it as a buy, with a price target of $6.30. It values the ASX growth share at 28x FY23’s estimated earnings.

Doctor Care Anywhere Group PLC (ASX: DOC)

The Doctor Care Anywhere share price has sunk 32% since the start of the 2022 year, despite the ongoing progress that the business is making.

It’s a business that enables patients to digitally connect with healthcare professionals.

Doctor Care Anywhere recently released its update for the final quarter of 2021, allowing it to announce some full-year numbers. Group revenue was $46.3 million, representing 115.7% growth year on year.

But it’s not just revenue increasing, profitability has gone up too. In the fourth quarter, the gross profit margin increased by 5.4 percentage points to 35.7%.

The growth trajectory continued throughout the fourth quarter of 2021, with revenue and consultations up 35.9% and 22.7% respectively. Approximately 50,500 new patients used the service during the quarter.

A new operating model was announced in December 2021, which is expected to deliver “significant improvements” in both the margin and profitability as it is rolled out during 2022. Patients will now get improved access to the right care, at the right time, for a larger number of people.

Instead of the only option being a 20-minute virtual consultation, patients will also be able to have a 20-minute virtual consultation with an advanced nurse practitioner or a quick consult where a patient completes a questionnaire to be reviewed by a prescribing clinician resulting in written advice or prescription without the need for a real-time video or phone consultation.

The post Are these 2 top ASX growth shares buys? appeared first on The Motley Fool Australia.

More reading

• 2 ASX growth shares to buy this month: experts
• Could this be the biggest issue faced by ASX retail shares heading into earnings season?
• 2 top ASX tech shares for February 2022
• 2 small cap ASX shares with a lot of potential: experts

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 Doctor Care Anywhere Group PLC. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC. 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 sheer incline in lithium prices over the past year has left many investors with their jaws unhinged and on the floor. Shockingly, many industry experts suspect these remarkable prices will continue into the future.

Fattening the pockets of anyone in the lithium game, the commodity price has increased about 525% in the last 12 months. This has led to ASX lithium shares such as Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Limited (ASX: LTR) exploding 181% and 291% in value, respectively.

However, the all-important question is: can it stay this way? Well, based on the perspectives of certain mining veterans and analysts, the answer is a resounding — yes.

Let’s take a closer look at the reasoning behind the hype.

Fundamentals are on the right side of lithium prices

When searching for credible insights, nearly 32 years of industry experience doesn’t go astray. That’s how well-accustomed former Fortescue Metals Group Limited (ASX: FMG) exec and mining veteran, Greg Lilleyman, is to the commodity game.

Having served as chief operating officer at Fortescue, Lilleyman has shared in the success of booming industries — such as iron ore — in his time. Although, after leaving the $60 billion iron ore behemoth, Lilleyman has been salivating over a commodity of a different kind.

Joining the board of Global Lithium Resources Ltd (ASX: GL1) as a non-executive director, Lilleyman is banking on lithium prices to benefit from decarbonisation tailwinds. Global Lithium is another ASX-listed lithium name that has enjoyed astonishing returns of late. For context, the company’s shares are up 435% in the past year.

Lilleyman expects the commodity commonly used in electric vehicle (EV) batteries will be a winner moving forward, stating:

Prices go up, prices go down. But I genuinely believe structurally the prices will remain solid in the spodumene and lithium space because the fundamentals say it should. There’s nothing speculative about it.

Importantly, the veteran draws attention to a shortage of mines producing high-quality lithium. In addition, Lilleyman expects supply to be harder to source and more expensive due to environmental reasons and increased taxes. These factors combined could push lithium prices even further to the upside.

Analysts on the same page

Lilleyman is not alone in his assessment of the burgeoning lithium industry. Recently analysts from Citigroup and UBS have both shared a positive sentiment for future lithium prices.

Firstly, Citigroup outlined its expectations for an extreme lithium deficit in 2022. Additionally, the lack of lithium projects in the pipeline has led the analysts to raise their long-term price forecast by 36%.

Referencing an expected 10.7 million EV’s to be sold in 2022, Citigroup analysts stated:

EV penetration is on an ‘S-curve’ and high lithium prices are here to stay.

Meanwhile, the team over at UBS is supportive of these forecasts. Adding that the investment bank believes climate-friendly government policy will squash internal combustion engine vehicle sales by 2040.

The post Are high lithium prices here to stay? Industry insiders say yes appeared first on The Motley Fool Australia.

More reading

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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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It’s been solid past three weeks for the Bank of Queensland Limited (ASX: BOQ) share price, having climbed 9.3%.

It appears investors are unfazed by the current geopolitical turmoil between the West and Russia, as well the rising rate of inflation.

At market close on Friday, Bank of Queensland shares finished trading at $8.43, down 0.47%.

In contrast, the S&P/ASX 200 Index has lifted by 3.34% after falling to a 9-month low in late January.

While the regional bank hasn’t released any market-sensitive announcements since the end of 2021, we take a look at how its shares compare to the other big banks.

How does the Bank of Queensland share price stack up against the big banks?

Looking at the major banks’ share price performance against Bank of Queensland shares, and there is a clear picture of who’s winning the race.

Since 28 January, the Commonwealth Bank of Australia (ASX: CBA) share price has risen by 2.17%. This is based on the current price at market close on Friday of $97.75. Although CBA did break the $100 mark again on the back of their strong first-half results for FY22.

Moving onto the National Australia Bank Ltd. (ASX: NAB), the country’s second largest bank saw its shares jump 10.6%. Investor confidence in the bank surged on the release of the company’s positive first-quarter trading results.

Next up, the Westpac Banking Corp (ASX: WBC) share price accelerated an astonishing 14.06% over the last three weeks. The bank also released its first-quarter update earlier this month, with investors seemingly pleased with the results.

Lastly, the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price gained 2.48%, the same as CBA shares above. The fourth largest bank by market capitalisation failed to impress the market on 7 February, when it released its first-quarter report.

As you can see, Westpac shares come out as the clear winner over the past 3 weeks. NAB has taken second place followed by a close run at third place by Bank of Queensland shares.

Are Bank of Queensland shares a buy?

A number of brokers weighed in on the Bank of Queensland share price last month.

The team of analysts at Macquarie cut its 12-month price target on the regional bank’s shares by 5% to $9.50. Based on the current price of $8.24, this implies an upside of around 13% for investors.

Following suit, Morgan Stanley also reduced its outlook on Bank of Queensland shares by 2.9% to $10, reflecting a potential upside of around 19%.

Lastly, the brokers from Citi raised their outlook on Bank of Queensland shares by 5% to $10.50. This indicates an attractive upside of roughly 25% from where it trades today.

Bank of Queensland commands a market capitalisation of about $5.42 billion, with approximately 642.63 million shares on its books.

The post The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks? appeared first on The Motley Fool Australia.

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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 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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