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ASX 200 shares are showing signs of a V-shaped recovery with the benchmark S&P/ASX 200 Index (ASX: XJO) climbing 57 basis points this past week.

To further illustrate, the Ishares Core S&P/ASX 200 ETF (ASX: IOZ) has climbed more than 1% during this time, as investors throw support behind the large end of the market once more.

In amongst the noise, there is a little-covered ASX 200 share that released its half-yearly results today and investors are piling in as a result.

At the time of writing, the Orora Ltd (ASX: ORA) share price is up 7.7% to fetch $3.57 on the back of its results for the half year ended 31 December 2021.

Orora touts itself as a leading sustainable packaging and visual solutions provider. It has a foothold in the design and manufacture of packaging products such as glass bottles, beverage cans, corrugated boxes, recycled paper, multi-walled paper bags, and point of purchase displays.

But this ASX 200 share isn’t a small enterprise. At last check, it had a market cap of more than $3 billion and trades on a 4.2% trailing dividend yield.

Orora share price jumps as NPAT, EPS spike in 1H FY22

The company announced several investment highlights in its earnings release today, including:

• Underlying earnings per share (EPS) came in at 11.8 cents per share, up 22.9% year on year
• Underlying net profit after tax (NPAT), before significant items, was $102.7 million, up 12.9% year on year (13.6% on a constant currency basis)
• Sales revenue was $1.98 billion, up 9.6% on the previous year (10.6% on a constant currency basis).
• Underlying earnings before interest and tax (EBIT) was $154.5 million, up 10.4%
• Operating cash flow came in at $145.5 million with cash conversion at 75%
• Return on average funds employed (RoAFE) was 24.8%, up from 21.4% year on year.

What else happened for Orora this period?

The Group reported an increase in underlying NPAT and EBIT with the bottom line growing by 23% from the same time last year.

Orora says this demonstrates the “continued strength of the Group’s diversified packaging assets and sustainable earnings”.

Investors might recall that back in October 2021, Orora announced a $150 million on-market buyback. Today’s release notes, as at 31 December 2021, the buyback is approximately 20% complete.

As a result, 9.3 million shares were bought at an average price of $3.37 per share for total consideration of $31.5 million, the company notes. According to the announcement, the buyback is forecast to be completed during 2022.

The company was also pleased with its Australasian business during the half. It says it largely avoided the impacts of Chinese wine tariffs, noting that “100% of this capacity [is] now redeployed to new product categories”.

Orora also claims it is on track to achieve its “2025 goal of 60% recycled content in the glass packaging it manufactures”.

It also says it is “well on track to achieving a 40% reduction in greenhouse gas emissions for Scope 1 and 2 by 2035 through a range of initiatives which include alternative furnace technologies”.

Management commentary

Speaking on the announcement, Orora Managing Director and CEO Brian Lowe said:

I am pleased to report that Orora delivered a strong result for the first half of the fiscal year 2022. Our performance reflects the unwavering focus of our team on executing our strategic priorities in the context of a global pandemic. The Group reported an increase in underlying net profit after tax and underlying EBIT on the prior corresponding period, demonstrating the continued strength of the Group’s diversified packaging assets and sustainable earnings. Our North American business produced another outstanding result in the first half, continuing to drive improvements in operating and financial performance, exercising pricing discipline in a higher inflation operating environment and delivering strong earnings growth in both the manufacturing and distribution OPS businesses.

What’s next for Orora?

The company is forecasting FY22 EBIT to be higher than the full-year result of FY21. In its Australasia business, “EBIT growth is expected for the Beverage business in 2H22, with FY22 EBIT to be broadly in line with FY21”.

Whereas in North America, “with sustained improvement in the performance of both OPS and OV, we expect 2H22 EBIT to be up on the [prior year] with continued strong earnings growth for the full year”, it said.

Orora share price snapshot

Orora shares have climbed almost 28% in the last 12 months and are up another 2% this year to date.

In fact, the company’s shares are in the green across all time frames, unlike the benchmark indices.

The post This under-the-radar ASX 200 share just jumped 8% following solid half-year results. And it pays dividends! appeared first on The Motley Fool Australia.

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• Sweet dreams: ASX 200 shares that have provided big returns without the worry

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.

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The Pro Medicus Limited (ASX: PME) share price is lifting today amid a nearly 53% boost in net profit in its half-yearly results.

The company’s shares are currently trading at $50.31, an 8.59% gain.

Let’s take a look at what the health imaging company reported.

Pro Medicus share price ascends amid half-yearly results

Highlights of the company’s half-year (H1 FY22) results include:

• Revenue up 40.3% to $44.33 million
• Net profit after tax (NPAT) of $20.68 million, a 52.7% gain
• Underlying profit before tax of $28.8 million, a 53.5% improvement
• Cash reserves of $76.17 million, up $14.91 million
• Fully-franked interim dividend of 10 cents per share, a 42.9% boost

What else happened in the half?

Pro Medicus experienced growth in the North American market, where revenue increased by 50%. One highlight was winning a key contract with Novant Health worth $40 million over seven years. The company also renewed a five-year contract with Allegheny Health in Pennsylvania worth $12 million.

The company’s European business also achieved a 39.6% boost in revenue. Key to this was extending a German government hospital contract to a fourth site.

And finally, its Australian business saw a 7.3% gain in revenue compared to the previous corresponding period. Key to this was rolling out the Healius Ltd (ASX: HLS) contract and extending its contract with I-Med.

Pro Medicus continued its major investment in research and development in Australia and overseas.

Big ups from management

CEO Dr Sam Hupert said the result was the strongest half-year revenue and profit in Pro Medicus’ history.

We thought it was a good result with all our key financial indicators heading in the right direction, not just revenue growth but also profit growth, margin expansion and retained earnings.

There were two key drivers behind the result: The first was the significant jump in transaction revenue from our US contracts which grew by 36.8%.

The second key driver was the extension of the German government contract that we announced in 2015 to a
fourth hospital which was a material sale.

What’s next for Pro Medicus?

Pro Medicus is looking to further boost its presence in the United States. It is actively targeting a “growing number of opportunities in this market.”

The company is confident in its future pipeline with a presence across academic, non-academic, corporate and private markets. There is a momentum shift toward cloud-based opportunities with many customers adopting a “cloud-first” strategy. Moreover, Pro Medicus sees this as a strategic advantage given its fully cloud-native offering.

What’s more, the board believes there are enough cash reserves to fund the growth of the business from its internal sources. The dividend will be paid to shareholders on 25 March.

Pro Medicus share price summary

The Pro Medicus share price has climbed 10.2% in the past year. However, Pro Medicus shares are down nearly 20% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 5% over the past year.

Pro Medicus has a market capitalisation of $5.2 billion, based on today’s share price.

The post Pro Medicus (ASX:PME) share price surges 8% on historic results appeared first on The Motley Fool Australia.

More reading

• 2 unstoppable ASX shares growing rapidly
• Are ASX growth shares still worth holding in 2022?
• Leading broker says Pro Medicus (ASX:PME) share price is a buy
• 2 medical tech ASX shares for turbulent times
• 5 things to watch on the ASX 200 on Monday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus 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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There are some ASX shares that are delivering ongoing growth year after year.

Businesses that continue to scale could be ones watch to keep an eye on because of how compounding works over time.

Investors may want to know about these two ASX shares that keep growing:

Pro Medicus Ltd (ASX: PME)

Pro Medicus describes itself as a leading medical imaging IT provider. It provides a full range of radiology IT software and services to hospitals, imaging centres and health care groups around the world.

The company just released its FY22 half-year result which showed that revenue rose 40.3% to $44.3 million. Net profit jumped 52.7% to $20.7 million and the interim dividend rose 42.9% to 10 cents per share.

It continues to win most of the major new contracts that are up for grabs. For example, it won a $40 million, 7-year contract from Novant Health – a community-based integrated delivery network that spans three US States.

Pro Medicus is making significant progress with all key implementations with previously won contracts such as the Intermountain one.

The reason for the big jump in the ASX share’s revenue and profit was the several older wins had come ‘on-stream’ towards the second half of FY21 such as Northwestern, NYU and Medstar.

But there could be more wins to come – management said that the pipeline remains strong with a “good spread” of opportunities in different markets, with many being cloud-based. Many are interested in more than one Visage software solution.

Australian Ethical Investment Limited (ASX: AEF)

Australian Ethical essentially describes itself as Australia’s original ethical fund manager, which started in 1986. The idea is to provide investors with investment products that align with their values whilst also providing competitive returns. Those investments are guided by the Australian Ethical Charter.

The company is experiencing ongoing demand for greener and ethically-focused investment strategies, both through the superannuation and non-superannuation investment options.

In the six months to December 2021, the ASX share almost an increase of funds under management (FUM) by close to $1 billion, rising to $6.94 billion. This included $0.6 billion of net flows and $0.27 billion of positive market movements.

FY21 underlying profit after tax grew 19% to $11.1 million. FY22 half-year profit is expected to be between $5 million to $5.5 million. The mid-point increase would be 8% year on year.

Australian Ethical said that it will continue to invest in its high-growth strategy given the positive momentum it’s experiencing and the scale of the opportunity ahead. It’s spending on its investment, sales and customer service teams and enhancing the product development and technology platforms.

The post 2 unstoppable ASX shares growing rapidly appeared first on The Motley Fool Australia.

More reading

• Are ASX growth shares still worth holding in 2022?
• Leading broker says Pro Medicus (ASX:PME) share price is a buy
• 2 medical tech ASX shares for turbulent times
• 5 things to watch on the ASX 200 on Monday
• Green light, red light! Why did the Australian Ethical (ASX:AEF) share price plunge 13% today?

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 Australian Ethical Investment Ltd. and Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Australian Ethical Investment 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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What could possibly go wrong with the ASX exchange-traded fund (ETF) sector? ETFs had a spectacular year last year, recording both record inflows and funds under management. So it might come as a surprise to hear that 2022 hasn’t been quite as kind as of yet.

According to the new Australian ETF Review from ETF provider BetaShares, ASX ETFs have indeed had a rough start to 2022. Although inflows towards ASX ETFs were still positive over January 2022, it wasn’t enough to stem the outflowing tide from global markets. According to BetaShares, total funds under management for the sector fell 3.7% over January. That represents a loss of $5.1 billion in funds under management. That left the ASX ETF sector with a total of $131.8 billion in funds under management at the end of January.

That was despite the launch of two new active ASX ETFs during the month, bringing the total number to 282 on the ASX. As an aside, BetaShares is expecting active ETF launches to remain “very frequent” throughout the rest of the year.

ASX ETFs suffer as global markets fluctuate

But even though ASX ETFs had a rough January overall, the sector has still grown by 36%, or $35.5 billion, over the past 12 months.

BetaShares also noted that monthly trading value over January increased by a hefty 26% to $10.3 billion. That’s reportedly the second-highest monthly level on record.

So which ETFs were investors buying and selling over January? The research tells us that the BetaShares Australia 200 ETF (ASX: A200) was the most popular ETF by inflows over the month that was. A bit over $300 million found its way into A200. Next up was the Vanguard Australian Shares Index ETF (ASX: VAS), with slightly more than $220 million. Following that, we had the Vanguard MSCI Index International Shares ETF (ASX: VGS) with roughly $118 million in inflows.

Conversely, the iShares S&P/ASX 200 ETF (ASX: IOZ) saw the largest outflows over January, with more than $353 million leaving that fund. Other ETFs experiencing outflows were mostly bond, or fixed-interest funds. Those included the iShares Core Composite Bond ETF (ASX: IAF) and the iShares Treasury ETF (ASX: IGB). 

So another interesting month for ASX exchange-traded funds over January. The sector is clearly not immune from the market volatility we have seen over 2022 thus far. But it arguably is also showing resilience too. It will be interesting to see what the rest of 2022 brings to ASX ETFs. 

The post What’s going so wrong for ASX ETFs in 2022 so far? appeared first on The Motley Fool Australia.

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• Is Vanguard MSCI Index International Shares ETF (ASX:VGS) an excellent investment for the long-term?
• 3 exciting ETFs for ASX investors next week
• Hot ETF? Here’s how the VAS (ASX:VAS) share price has performed in 2022 so far…
• The Vanguard Australian Shares ETF (ASX:VAS) just got a major 2022 makeover. Here’s what has changed…
• Is VAS (ASX:VAS) really the best ASX ETF on the share market?

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended 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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The EML Payments Ltd (ASX: EML) share price has tanked today amid the company releasing its half-year results for the period ending 31 December 2021.

The payment solutions company announced a 209% increase in its record gross debit volume, along with increased revenues.

But it seems investors are not convinced. At the time of writing, the EML share price is down 8.61% to $2.76. Earlier in the session, it fell as low as $2.69.

Let’s take a closer look at what the company announced this morning.

What did EML announce?

Here are the highlights of EML’s half-yearly results:

• Gross debit volume (GDV) of $31.6 billion, up 206% against the PCP
• Gross revenue of $114.5 million, up 20% on PCP
• Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $26.9 million, down 4% on PCP
• Net profit after tax (NPAT) plus amortisation of $13.1 million, up 6% against PCP
• Underlying operating cash inflows of $14.7 million, down 58%

EML has attributed its record GDV — the monetary value of transactions across its payment products — to “demand for our payment services” and “strong organic growth” during the period.

Within that, the company saw a 431% increase in its digital payments sector. This coincided with the integration of European payments provider Sentenial Limited which it acquired on 30 September. EML expects to continue to reap the benefits from this buy into the next half of FY22.

The company saw a drop in its cash flow during the half due to two major delays in customer receipts. These totalled $8.6 million although 75% of this overdue balance has been recouped, the company said.

Its lower EBITDA was due to “higher overhead costs, lower net interest income (down $2.7 million) and lower European setup fees (down $2.4 million on PCP)”.

EML expects its EBITDA guidance for the full financial year to be between $58-$65 million.

What else did EML report?

The payment company acknowledged ongoing legal proceedings with its own shareholders.

The class action involves EML’s Irish subsidiary PFS Card Services and the Central Bank of Ireland (CBI). It is alleged “EML did not comply with its disclosure obligations and engaged in misleading and deceptive conduct regarding disclosure”.

While EML has denied the allegations and liability, the company says it will “vigorously defend the proceedings” with legal costs potentially amounting to $10.5 million. The matter will be heard in the Supreme Court of Victoria.

Looking ahead to the next half, EML said:

As we head into H2 FY22 and beyond, we expect to see further growth in digital-first solutions with the introduction of open banking products in Europe and the upcoming launch of a new gaming proposition that couples the latest in open banking technology with the Group’s industry leading card solutions for sports betting and social gaming providers.

Work is underway to integrate the Nuapay business and provide customers with the ability to access the full suite of open banking, accounts and card payments via a single integration.

EML share price snapshot

Over the last 12 months, the EML Payments share price has dropped by 33%.

The company saw a 52% plunge in its share price in May 2021 following news of ongoing queries between its Irish subsidiary and the Central Bank of Ireland. At that time, the EML share price hit a low of $2.47.

However, just last week UBS considered the payment company to be potentially undervalued due to its recent business growth.

The company has a current market capitalisation of $1.04 billion.

The post EML (ASX:EML) share price sinks 9% despite record-breaking product demand appeared first on The Motley Fool Australia.

More reading

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• Down almost 20% in 2022, is the EML share price now too good to ignore?
• 2 fast-growing ASX shares rated as buys in this correction
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• Why is EML payments (ASX:EML) share price having a rollercoaster start to the year?

Motley Fool contributor Alice de Bruin has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended EML Payments. The Motley Fool Australia owns and has recommended EML Payments. 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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WiseTech Global Ltd (ASX: WTC) shares are joining the broader rally on the ASX today.

The WiseTech share price is up 1.4% at the time of writing to $46.39 per share.

The company, which provides cloud-based software solutions for international and domestic logistics firms, trades at a price to earnings (P/E) ratio of 135 times.

While that kind of P/E ratio may put some ASX investors off, Elston Asset Management’s Bruce Williams points to the company’s very strong growth as a reason to buy.

Why this fundie is buying WiseTech shares

Speaking to Livewire Markets, Williams said, “We think WiseTech Global is a good opportunity at these levels. It has started to bounce. We’ve owned it for a little while so we’ve readjusted our weighting there.”

Williams indicated the pressing need from today’s snarled logistics operators is offering tailwinds for WiseTech shares. “It provides software services to logistics, and now more than ever, logistics needs to operate well; it’s stressed enough as it is,” he said.

Then there’s the strong growth trend.

According to Williams:

WiseTech is growing very, very strongly. They’ve got a lot of the sector as clients and it’s a five-year integration program. Or up to five years. They continually build revenue, not only from new client wins but from existing clients as well.

But aren’t WiseTech shares a bit pricey?

“The price does worry us. It is something a little outside what we usually pay for assets,” Williams conceded.

However, the fund manager thinks the long-term outlook for WiseTech shares is strong, with the company making it difficult for competitors to take away their market share.

According to Williams:

We think they are creating a real moat around what it is they do. We think there are high barriers to entry. We think they have a strong network effect; they are becoming the system to use for any logistics players.

We very much like its long-term prospects and are happy to buy it at these levels.

WiseTech share price snapshot

WiseTech shares posted a tremendous 91% rally in calendar year 2021.

So far, 2022 has been more difficult, with the WiseTech share price down 23% since the opening bell on 4 January.

All up, over the past 12 months WiseTech shares have gained 41%, handily outpacing the 5% gains posted by the S&P/ASX 200 Index (ASX: XJO) over that same time.

The post Why this leading fund manager is buying WiseTech (ASX:WTC) shares appeared first on The Motley Fool Australia.

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• How did ASX tech shares perform today?
• ‘Bright future’: Is the Wisetech (ASX:WTC) share price on the way back up?
• 3 ASX tech shares to pounce on NOW while they’re cheap
• 3 ASX 200 shares tipped to shine bright in 2022
• ‘Plenty of bargains’ following ASX tech shares sell-off: expert

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended WiseTech Global. The Motley Fool Australia owns and has recommended WiseTech Global. 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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For many ASX investors, much of their excitement of the stock market comes from picking a winning growth share and (hopefully) watching it do its thing.

But have ASX growth shares had their moment? One expert is going against the grain to declare the time has come to turn away from growth shares and towards more established investments.

Are they right? Here are some arguments for and against investing in growth shares in 2022.

ASX growth shares: the bulls and the bears

Epoch Global Equity Shareholder Yield portfolio manager, John Tobin has come out swinging against growth shares today. He believes they will suffer in a rising interest rates environment.

According to Tobin, growth stocks have been outperforming established shares since 2020 due to a period of “artificially low interest rates”.

“Our argument is [growth stocks] are going to face stronger headwinds when rates rise,” he said.

“It’s about the math, you can’t get around it … for a given increase in interest rates, the impact on present value is greater for cash flows in the distant future.”

However, other experts counter Tobin’s bearish outlook with their own bullish arguments.

Montgomery Investment Management chair and chief investment officer, Roger Montgomery claims the pull-back experienced by the S&P/ASX 200 Index (ASX: XJO) in 2022 has left many growth shares trading for bargain prices.

In a piece published to Livewire, Montgomery said, “the current equity correction has taken a lot of the froth out of the market.

“But caught up in the carnage have been a number of high-quality companies with years of growth ahead.”

Among them, are tech shares Megaport Ltd (ASX: MP1) and Pro Medicus Limited (ASX: PME). Each has had their price-to-earnings (P/E) ratios fall between 31% and 33% since the start of 2022, according to the expert.

Meanwhile, those of Transurban Group (ASX: TCL) and Reece Ltd (ASX: REH) have fallen between 25% and 29%.

Montgomery says now is the time to get in on “some of the highest quality names in the market”. He continued:

This is … a plain vanilla correction that will see investors who have taken on too much risk in the quest for returns suffer more than those who have been disciplined about quality and value.

The post Are ASX growth shares still worth holding in 2022? appeared first on The Motley Fool Australia.

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• 2 quality ASX 200 tech shares with ‘years of growth’ ahead: broker
• Goldman Sachs names 2 ASX 200 shares with major upside potential
• 2 ASX tech shares we’re backing through the turmoil: analysts
• 2 top ASX growth shares that are worth buying: brokers
• How did ASX tech shares perform 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 MEGAPORT FPO and Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended MEGAPORT 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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An online broker has started $0 brokerage for buying ASX shares.

CMC Markets announced Wednesday that purchases of Australian shares under $1,000 would now attract zero fees.

The offer applies for the first transaction per stock per trading day, and also includes CBoe Australia-listed (formerly Chi-X) shares.

CMC had already offered zero brokerage on buying and selling US, Canadian, UK and Japanese equities for more than a year now. But this week is the first time it is doing the same for ASX shares. 

Zero brokerage is a much rarer feature on Australian shares than in the US, where brands like Robinhood Markets Inc (NASDAQ: HOOD) have made it a default for most online brokers. 

There is a technical explanation for this. In the US, multiple competing exchanges pay for order flow, allowing brokers to live off the rebates. 

But in Australia, ASX Ltd (ASX: ASX) has no need to pay for liquidity as it’s the only game in town.

“In Australia you’ve got a monopoly,” Stake chief Matt Leibowitz told The Motley Fool in 2020.

“The ASX is actually charging a per-trade fee, regardless if you make or take liquidity.”

It is suspected CMC Markets is losing using the $0 brokerage on ASX shares as a loss leader to attract customers.

The Motley Fool has requested CMC Markets to confirm. 

Young investors want $0 brokerage

According to CMC Markets Asia-Pacific head Matt Lewis, $0 brokerage on ASX shares were aimed at generation Z and millennial investors who had flooded into the market in recent times.

“Over the last few years record-low interest rates have led to an inflow of Australians looking to enter the stock market including new demographics and younger investors,” he said. 

“The knock-on effect has been a significant increase in ETF trading as younger investors look for simple ways to diversify their portfolio in a cost-effective way.”

The normal fee on CMC Markets for transactions of ASX shares is $11 or 0.1%, whichever is greater.

This brokerage still applies on sell orders, as well as from the second buy order onwards per stock per trading day.

Customers are warned that orders placed after market close will be counted as a transaction on the next trading day, which could affect the way the $0 brokerage is dished out.

CMC Markets operates on a direct ownership model. This is different to some other budget platforms like Sharesies and Superhero, which uses a custodianship model to offer low fees.

The post Finally: Here’s how you can buy ASX shares with $0 brokerage appeared first on The Motley Fool Australia.

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• Here’s why the Genworth (ASX:GMA) share price is rocketing 8%
• 2 ASX 200 shares smashing 52-week highs today
• This expert says now is the time to buy ASX dividend shares. Here’s why
• ASX 200 (ASX:XJO) midday update: CSL upgrades guidance, Treasury Wine jumps
• Breville (ASX:BRG) share price pops after 25% profit surge

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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Shares in Genworth Mortgage Insurance Australia Ltd (ASX: GMA) are jumping into the green today. At the time of writing the Genworth share price is $2.86, up 8.33%.

Genworth climbed as high as $2.92 in early morning trading before retracing to its current level.

Investors are responding to a company announcement that alternative investment manager Ares Management Corp has taken a stake in the company.

Why are Genworth shares spiking today?

Genworth confirmed today it was made aware that alternative investment manager Ares Management has acquired a minority stake.

Ares is an alternatives giant and has its tentacles wrapped around credit, private equity, real estate, and other secondary markets. Since its inception in 1997, Ares has grown its assets under management (AUM) substantially.

The fact Ares has taken a spot in the front row of Genworth’s equity show is no minor news. The United States-based fund manager became public in 2014. In 2018 it became a body corporate, the first alternative asset manager to do so.

With Ares on its register, Genworth has the full force of US$295 billion in AUM behind it, via the fund manager’s book. It remains to be seen if Ares aims to take a more active role in the company.

And best believe Genworth acknowledges the investment as a vote of confidence in the company’s growth narrative.

“Genworth welcomes this investment by Ares in the Company as an indication of the value it sees in Genworth’s business,” the release noted.

Back in January, the company’s share price popped after announcing it was selected as the exclusive provider of lenders mortgage insurance (LMI) to the Commonwealth Bank of Australia. Specifically, for the big bank’s CBA and Residential Mortgage Group (RMG) businesses.

Genworth will announce its financial results for the full year ending 31 December 2021 on 25 February, per today’s release.

Genworth share price snapshot

In the past 12 months the Genworth share price has climbed just 4%. Although it has jumped more than 23% this year to date.

Over the last month of trading, shares have gained 18% and are now front-running the major indices since 4 January.

The post Here’s why the Genworth (ASX:GMA) share price is rocketing 8% appeared first on The Motley Fool Australia.

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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.

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ASX 200 shares are showing signs of a recovery in February having thrust off 3-month lows to start the month.

The benchmark S&P/ASX 200 Index (ASX: XJO) has slipped 4.5% since 4 January, although is showing momentum after jumping off a low of 6,838 points to now trade above 7,244 points.

Within that group, two ASX 200 shares are shining brightly today after cruising past their previous 52-week highs. Let’s take a quick look.

Vicinity Centres (ASX: VCX)

Shares in property manager Vicinity are jumping 9% to a new 52-week high today after the company released its half-yearly results.

It was a positive half for Vicinity, with statutory net profit after tax (NPAT) up by more than $1 billion. This took it from a loss to a $650.2 million profit. Funds from operations (FFO) was $287.7 million or 6.32 cents per share.

The group also completed 643 leasing deals and leased 201 vacant stores during the half. Collection of gross rental billings averaged 80% for the period as well.

Vicinity expects FY22 FFO per security to be in the range of 11.8 cents to 12.6 cents. Adjusted FFO is expected to fall in the range of 9.5 cents to 10.3 cents.

It is also aiming for a payout range of 95%-100% of AFFO for its distributions in FY22, according to the release today.

Vicinity’s “disciplined approach to cash collection and retailer support, together with higher than anticipated tenant retention and resilient ancillary income” drove the half’s results, according to the company’s CEO, Grant Kelley.

Ampol Ltd (ASX: ALD)

Shares in petroleum player Ampol shot to new single-year highs after investors drove up the price in pre-market trading. Ampol is now trading at $32.20 after reaching a high of $32.54.

Whilst there’s been no price-sensitive information released by the company today, gasoline spot prices and futures have hit 52-week highs as well. The spot price is now fetching US$2.68 per gallon, up 48% on the year.

In the last month, gasoline has jumped over 10%, whereas the Brent crude oil contract – upon which more than 90% of the world’s oil is priced – has jumped more than 9% as well.

Given Ampol’s position as a price taker in the petroleum markets, its share price closely traces the price of oil and gasoline.

As such, the commodities rally has been a net positive for Ampol, and the market agrees after bidding up its share price almost in unison with gasoline and oil prices.

Plotting the price dispersion of all three commodities over the last few months reveals the tightness of this fit as is the case with all price takers in commodities.

The post 2 ASX 200 shares smashing 52-week highs today appeared first on The Motley Fool Australia.

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• Sky high profits: Vicinity Centres (ASX:VCX) share price rockets 9% following half-year results
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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.

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