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Looking for some new portfolio additions and have a penchant for ASX 200 growth shares?

If you are, then it could be worth checking out the two shares listed below that have recently been named as buys.

Here’s what you need to know about these highly-rated ASX growth shares:

Breville Group Ltd (ASX: BRG)

Breville could be an ASX 200 growth share to buy right now.

It is the leading appliance manufacturer behind brands such as Breville, Sage, Kambrook, and Baratza. These products are found in countless kitchens across Australia and the world.

The team at Morgan Stanley thinks investors should be snapping up its shares right now. Particularly given that it believes the company could have had a strong first half based on industry updates. In addition, it highlights potential margin tailwinds that will be supportive of growth.

Morgan Stanley has an overweight rating and $29.00 price target on Breville’s shares.

Life360 Inc (ASX: 360)

Another ASX 200 growth share that could be a buy this month according to analysts is Life360.

It is a Silicon Valley based technology company with a focus on products and services for digitally native families. The key product is the increasingly popular Life360 app, which has almost 60 million active users. It offers families features such as communications, driver safety, and location sharing.

Goldman Sachs is a big fan of the company and sees huge revenue growth ahead.

It analysts highlight that “Life360 is exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US.”

Goldman Sachs currently has a buy rating and $10.50 price target on its shares.

The post Here’s why these ASX 200 growth shares could be top buys appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $300 a month in ASX shares to target $22,000 annual passive income!
• Here are the top 10 ASX 200 shares today
• These ASX 200 growth shares can rise ~30% to 55%
• Top ASX shares for beginner investors to buy in 2024
• Why these ASX 200 growth shares could be strong buys

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. 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 Scott Phillips.

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Rio Tinto Ltd (ASX: RIO) shares have dropped quite sharply in 2024 to date, falling by around 6% and reversing some of the gains the ASX mining share has experienced over the last few months, as we can see on the chart below.

What’s going on?

The culprit of Rio Tinto’s slip appears to be a fall in the iron ore price. Rapid changes in the iron ore price can quickly send the Rio Tinto share price higher or lower, depending on which direction the commodity value is headed.

According to Trading Economics, the iron ore price fell back below US$130 per tonne after recently being above US$140 per tonne. But, we should keep in mind that in August the iron ore price was below US$110 per tonne, so it is still up substantially in the last few months.

Trading Economics analysis suggested the decline of the iron ore price was due to “signs of low demand”. The Chinese economy grew by 5.2% in 2023, which was less than the market expectations of 5.3%.

As explained on the website:

New home prices sank at the sharpest pace since 2015, stretching the declining momentum to the sixth month and underscoring the slump in property demand in the country.

Persistent macroeconomic headwinds for China and uncertainty over demand for construction materials in the year ahead tempered iron ore demand from steel mills and countered added buying activity in their usual restocking season.

Market players noted that robust portside iron ore inventories limited new purchasing demand from steel mills as the sector struggles with decreasing margins, contributing to the downturn.

Is this a good time to invest in Rio Tinto shares?

I think it’s always better to invest in a cyclical business like an ASX mining share after a decline rather than when the iron ore price and Rio Tinto share price are running hot.

No one can predict with certainty when the iron ore price will move substantially up or down or by how much. But, it does keep going through positive and negative periods as supply and demand conditions change.

Now is certainly a better time to invest in Rio Tinto shares than compared to the start of 2024. However, it’s still up by more than 10% over the last three months.

I think it’s a much better idea to buy ASX iron ore shares when the iron ore share is below US$110 per tonne and preferably below US$100 per tonne.

But, I like the moves the company is making to diversify and grow its operations.

It has made major plans to grow its exposure to copper, with the ASX mining share increasing its stake in the giant copper mine Oyu Tolgai in Mongolia.

According to Rio Tinto, global demand for copper is set to grow by between 1.5% to 2.5% per year. Decarbonisation is a strong tailwind for this resource.

Using the forecasts on Commsec, it’s valued at 10x FY24’s estimated earnings with a possible grossed-up dividend yield of 8.6%.

The post The iron ore price is falling, is now a good time to buy Rio Tinto shares? appeared first on The Motley Fool Australia.

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More reading

• Rio Tinto share price marching higher amid ‘world-class’ lithium reboot efforts
• Top brokers name 3 ASX shares to buy today
• Should you buy Rio Tinto shares following the miner’s update?
• 5 things to watch on the ASX 200 on Wednesday
• Why Core Lithium, Hub24, Lovisa, and Rio Tinto shares are dropping 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. 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 Scott Phillips.

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There are plenty of high-profile ASX shares in the S&P/ASX 200 Index (ASX: XJO). But, a few quiet achievers have also done incredibly well. Reece Ltd (ASX: REH) shares look like a hidden gem.

Past performance is not a reliable indicator of future performance, but over the past year, the Reece share price has lifted 45%. And it’s almost 120% higher than it was five years ago.

It’s a good ASX 200 share that is quietly doing a very effective job. Below are some of the reasons why I like the company.

Diversified growth

Reece may be best known for its bathroom products and national showroom network in Australia, but there are plenty of other areas where the business is growing.

An acquisition in 2018 gave Reece a strong presence in the United States, particularly in the southern ‘sunbelt’ states. Last year, the company opened 15 new branches and made a strategic acquisition of a “small” 12-branch refrigeration wholesaler in Texas. It expects a “sustainable rate of growth being around 10 to 15 branches per year”. The US growth could be an important driver for Reece shares from here.

At the ASX 200 share’s AGM, it said its US store rollout (and the Reece rebrand) was “progressing at pace.” The business is open to using bolt-on acquisitions to expand its scale.

It’s investing in Australia and New Zealand with network upgrades and non-plumbing network expansion.

Solid performance

After all the interest rate rises and strong inflation in Australia, it’d be understandable if demand for bathroom suppliers declined. Despite that, Reece’s numbers continue to be strong and resilient.

In the first quarter of FY24, total sales were up 3% year over year to A$2.6 billion. ANZ sales were up 3%, and US sales, in US dollar terms, were flat. The US has faced very strong inflation and interest rates as well.

However, Reece does expect cost inflation pressure and a softening demand setting. But, in my opinion, any downturn could be relatively short-term for Reece’s profit.

Strong long-term focus

Reece CEO Peter Wilson told the AGM:

Our focus remains on the long term. By delivering our customer promise and continuing to invest, we know we will be able to emerge from a cyclical downturn as a stronger business.

In summary, we delivered another strong FY23, and believe we are well placed to continue managing a softening external environment. As ever, we will maintain our long-term focus and continue investing to deliver our 2030 vision.

The Wilson family has been managing Reece for decades and, with ownership of Reece shares, has billions of dollars at stake. This means the CEO (and other family members) are highly motivated for the ASX 200 share to keep doing well and not take any unnecessary risks.

The post Why Reece shares look like a hidden gem of the ASX 200 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• How to become an ASX share market millionaire by investing $500 a month
• Top 10 superannuation funds for growth in 2023 revealed: Chant West
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares 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. 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 Scott Phillips.

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S&P/ASX 300 Index (ASX: XKO) dividend share Adairs Ltd (ASX: ADH) paid enormous dividends during the COVID-19 period. There may be dividend weakness in the short term because of a difficult economic situation for households, but stronger payouts are possible in the years ahead.

The Adairs share price has dropped significantly over the last couple of years. It’s down 65% from June 2021 and has fallen 41% in the past year.

I think one of the underappreciated things about a fallen ASX dividend share is that the lower share price translates into a much higher dividend yield in the future.

For example, imagine a business has a dividend yield of 7%, and then it falls 10%. This turns the dividend yield into 7.7%. A 50% fall would translate into a grossed-up dividend yield of 10.5% for that same business.

What’s going on with the Adairs share price?

Adairs is suffering from a loss of investor confidence about its profitability amid high inflation and less discretionary spending.

At the AGM, the home furnishings retailer revealed its sales in the first 21 weeks of FY24 were down 9%. Higher interest rates and cost of living pressures saw a decline in customer traffic across each business arm of around 10%.

Adairs said the outlook for the rest of FY24 was “expected to remain challenging given prevailing macroeconomic headwinds”, adding the business was being “managed accordingly”.

Huge projected dividend yield

Those difficulties may see Adairs only pay a dividend per share of 4 cents per share in FY24, according to the forecast on Commsec.

But, by 2026, better economic conditions may see a rebound in company profit and dividend payout. The forecast is that Adairs could pay an annual dividend per share of 19.4 cents in FY26.

At the current Adairs share price, that translates into a grossed-up dividend yield of 16.7%, or 12% if we exclude the effect of franking credits. It’s priced at 6x FY26’s estimated earnings.

This is just an estimate, of course. The actual dividend may be smaller (or larger) than expected.

Can the ASX 300 dividend share’s profit recover?

Adairs may benefit strongly when retail conditions recover, but it’s also doing a few specific things to try to grow profit.

For example, it’s opening larger store formats that achieve “superior economics” and support category expansion. The ASX retail share is also using artificial intelligence to improve the customer experience and team productivity.

The company plans to roll out numerous Focus on Furniture stores around the country, while Mocka is planning a physical presence for its products. Physical locations are being evaluated.

The post This ASX 300 dividend share is projected to pay a 16% yield in 2026! appeared first on The Motley Fool Australia.

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More reading

• 3 ASX shares I’d buy today for big dividend income in 2025
• Why Adairs, Alumina, ResMed, and WiseTech shares are storming higher

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 positions in and has recommended Adairs. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Arcadium Lithium (ASX: LTM) shares have been on a poor run in January.

Since the turn of the year, the lithium miner’s shares have lost 28% of their value.

While this is disappointing, one leading broker believes it has created a compelling buying opportunity.

Arcadium Lithium shares tipped to rocket

According to a note out of Bell Potter, its analysts have initiated coverage on the lithium miner this morning with a very bullish stance.

In fact, the broker believes that Arcadium Lithium, the result of the merger between Allkem and Livent Corp, could generate mouth-watering returns for investors over the next 12 months.

The note reveals that the broker has started its coverage on the company with a buy rating and $12.10 price target.

Based on the current Arcadium Lithium share price of $8.09, this suggests 50% upside for investors.

What did the broker say?

Bell Potter has been running the rule over Arcadium Lithium’s operations and likes what it sees.

For example, it highlights that “the transaction brings increased scale and a tilt to further downstream value.”

In addition, it notes that the combination of Allkem and Livent Corp provides significant lithium diversification, a strong balance sheet, and plenty of growth projects. It concludes:

LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. The group has a strong balance [sheet] and growth portfolio.

All in all, the broker appears to believe Arcadium Lithium shares could be a top option for investors that want some exposure to the beaten down lithium industry.

The post Why Arcadium Lithium shares could rise 50% from today appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Why are Arcadium Lithium shares down 17% since trading commenced?
• Why Arcadium Lithium, BHP, Core Lithium, and Magellan shares are falling today
• Have lithium prices finally bottomed?
• Here are the top 10 ASX 200 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. 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 Scott Phillips.

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The Telstra Group Ltd (ASX: TLS) share price has seen a mixed performance over the past year, it’s actually down by 3.4%. That compares to a fall of 0.4% for the S&P/ASX 200 Index (ASX: XJO).

It’s an interesting situation because plenty of other well-known businesses have risen over the last 12 months. Think, Wesfarmers Ltd (ASX: WES), which is up 16%, the JB Hi-Fi Limited (ASX: JBH) share price (up 19%), and the Goodman Group (ASX: GMG) share price (up 27%).

After this period of underperformance, could now be a good time to look at an investment in Telstra shares?

Dialling in the positives

The ASX telco has achieved a very strong market position in mobile telecommunications in Australia. It claims to have the best mobile network, which has attracted the most subscribers. This allows it to generate the most revenue and then re-invest the most money into its network, ensuring it can continue to have the best network.

Telstra saw hundreds of thousands of new subscribers added in FY23 as well as an increase in average revenue per user (ARPU). FY23 postpaid handheld ARPU rose 5.4% year over year to $51.15.

The company has already built its 4G infrastructure, and it’s making good progress with its 5G infrastructure. The more subscribers it gains, the better for margins it is because it’s spreading the (fixed) costs across more users.  

The growth of its 5G network may also enable Telstra to offer a strong wireless broadband service and take market share from the NBN, which means Telstra could capture a lot more of the margin for home broadband customers.

Telstra has also been diversifying its earnings by expanding into categories like digital healthcare and cybersecurity. The ASX telco share recently acquired Digicel Pacific, giving the company exposure to Pacific island markets like Fiji.

The ASX telco share has committed to growing the dividend for shareholders over time if it can. In FY23, the business grew its annual dividend per share by 3% to 17 cents. That means it has a grossed-up dividend yield of just over 6%.

Negatives to consider about Telstra shares

The company has been able to increase prices in line with inflation for FY23 and FY24, but as inflation reduces, this could mean its revenue growth slows down.

Telstra’s earnings are heading in the right direction. However, there’s no guarantee that strong competition won’t increase again in the future and hurt margins. However, Telstra’s competitive position may help its market share and ability to increase prices.

Finally, I’ll point out that the business isn’t on an incredibly low price/earnings (P/E) ratio. According to the forecast on Commsec, the Telstra share price is valued at 22x FY24’s estimated earnings. It’s possible to find better value ASX defensive shares.

The post The pros and cons of buying Telstra shares right now appeared first on The Motley Fool Australia.

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More reading

• Buy Endeavour and these ASX dividend stocks
• Top ASX shares to buy in 2024 instead of investing in a term deposit
• Which had the better year in 2023: Telstra, Woodside or Wesfarmers shares?
• Lifetime income: 3 ASX dividend stocks I’m planning to never sell
• Is Telstra stock a low-risk investment for 2024?

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 positions in and has recommended Goodman Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group and Wesfarmers. The Motley Fool Australia has recommended Goodman Group and Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The benchmark ASX 200 index is home to 200 of the largest listed companies on the Australian share market.

While not all shares on the index will necessarily be good portfolio additions (i.e. Weebit Nano Ltd ASX:WBT) ), two that could be are listed below.

These are two true blue chip stars and have been tipped to deliver strong returns for investors in 2024. They are as follows:

CSL Limited (ASX: CSL)

The first ASX 200 blue chip share for investors to look at is biotherapeutics giant CSL.

It is arguably one of Australia’s highest quality companies, developing life-saving therapies and vaccines for the global population. Among its portfolio are products such as Albumex, Privigen, Hizentra, Idelvion, and Afstyla.

But it won’t stop there. CSL reinvests in the region of 12% of its sales revenue back into research and development (R&D) each year. This means the company has an R&D pipeline filled with some potentially lucrative (and life-saving) therapies and vaccines.

The team at Morgans rates the company highly. Its analysts have an add rating and $328.20 price target on its shares. This implies potential upside of almost 14% for investors from current levels.

ResMed Inc. (ASX: RMD)

Another quality ASX 200 blue chip share that is highly rated by analysts is ResMed.

It is one of the world’s leading sleep treatment companies with a portfolio of products for sufferers of disorders such as sleep apnoea.

This certainly is a lucrative market to be in. The company estimates that one in five people has a sleep disorder globally, with the vast majority still undiagnosed. And while weight loss drugs could steal a share of this market, most analysts agree that there’s still a huge addressable market for ResMed to grow into over the next couple of decades.

It is partly for this reason that Macquarie has an outperform rating and $33.40 price target on its shares. This suggests upside of almost 27% for investors over the next 12 months.

The post Experts tip very big returns from these outstanding ASX 200 blue chip shares appeared first on The Motley Fool Australia.

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More reading

• 3 things ASX investors should watch this week
• Top brokers name 3 ASX shares to buy next week
• Goldman Sachs says these blue chip ASX 200 shares are top buys
• Is the ResMed share price in the buy zone ahead of next week’s update?
• Is 2024 the year that CSL shares finally hit a new high?

Motley Fool contributor James Mickleboro has positions in CSL and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Is your income portfolio in need of some new additions? If it is, then it could be worth checking out the ASX dividend stocks listed below.

Here’s why analysts have put buy ratings on them:

GDI Property Group Ltd (ASX: GDI)

The team at Bell Potter is tipping this property company’s shares as a buy.

The broker believes its shares are good value given its positive earnings outlook. Its analysts note that the company “offers a +10% 3yr EPS CAGR which is amongst the highest amongst [its] coverage.”

The broker expects this to underpin dividends per share of 5 cents in both FY 2024 and FY 2025. Based on the current GDI Property share price of 64 cents, this implies dividend yields of 7.8% in both years.

Bell Potter has a buy rating and 75 cents price target on its shares.

Endeavour Group Ltd (ASX: EDV)

Analysts at Goldman Sachs think that Endeavour is an ASX dividend stock to buy.

The broker is a big fan of the Dan Murphy’s owner due to its “attractive valuation.” In addition, it is anticipating “market share gain (already 40% market share) in defensive alcohol retail from consumer data and loyalty advantages.”

Goldman expects this to lead to fully franked dividends of 21 cents per share in FY 2024 and 23 cents per share in FY 2025. Based on the current Endeavour share price of $5.42, this would mean yields of 3.9% and 4.2%, respectively.

Its analysts have a buy rating and $6.40 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

Goldman Sachs is also a fan of telco giant Telstra.

It believes it is an ASX dividend stock to buy due to the “low risk earnings (and dividend) growth that Telstra is delivering across FY22-25.”

Speaking of dividend growth, the broker is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.97, this equates to yields of 4.5% and 4.8%, respectively.

Goldman has a buy rating and $4.70 price target on the company’s shares.

The post Buy Endeavour and these ASX dividend stocks appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in 2024 instead of investing in a term deposit
• Which had the better year in 2023: Telstra, Woodside or Wesfarmers shares?
• Lifetime income: 3 ASX dividend stocks I’m planning to never sell
• Goldman Sachs says these blue chip ASX 200 shares are top buys
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week with a bang. The benchmark index rose 1% to 7,421.2 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise again

Another positive session is expected for the Australian share market on Monday following a very strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points higher this morning. On Wall Street, the Dow Jones was up 1.05%, the S&P 500 rose 1.2%, and the Nasdaq charged 1.7% higher. The S&P 500 is now officially in a bull market.

Oil prices fall

It could be a subdued start to the week for ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices softened on Friday night. According to Bloomberg, the WTI crude oil price was down 0.9% to US$73.41 a barrel and the Brent crude oil price was down 0.7% to US$78.56 a barrel. This was driven by concerns over the health of the Chinese and global economy.

Arcadium Lithium named as a buy

Arcadium Lithium (ASX: LTM) shares could have major upside potential according to analysts at Bell Potter. This morning, the broker has initiated coverage on the lithium giant with a buy rating and $12.10 price target. This implies 50% upside from current levels. It said: “LTM provides the largest, most diversified exposure to lithium.”

Gold price rises

It looks like it could be a decent start to the week for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price rose on Friday. According to CNBC, the spot gold price was up 0.5% to US$2,031.8 an ounce. This was driven by rate cut optimism.

Buy Macquarie Technology shares

The team at Goldman Sachs thinks investors should be buying Macquarie Technology Group Ltd (ASX: MAQ) shares. This morning, the broker has reiterated its buy rating and $77.70 price target on the company’s shares. Goldman was pleased with the Development Application (DA) approval for the IC3 Super West (IC3W) data centre at its Macquarie Park campus. It said: “MAQ’s DA approval is an important milestone in the acceleration of the company’s data centre growth ambitions.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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 Scott Phillips.

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When an S&P/ASX 200 Index (ASX: XJO) stock has fallen or risen strongly, it is difficult to figure out whether it is a great time to buy.

That’s because, psychologically, investors are likely to think that they have missed out on most of the profits of a stock that has already rocketed. 

Conversely, shares that have fallen are also intimidating because punters are fearful that there are more losses coming.

So what do you do?

One of the hottest ASX 200 stocks in recent times has been Neuren Pharmaceuticals Ltd (ASX: NEU).

The Neuren share price has soared an unbelievable 163% over the past 12 months.

Let’s break down whether one should buy this ASX 200 stock, or avoid it like the plague:

Professional investors aren’t too worried

Firstly, it’s worth noting that all five analysts surveyed on CMC Invest reckon Neuren is still a buy despite the massive run-up in price.

So they obviously think Neuren has plenty more upside to come.

The analysts at Elvest Fund, who are in this camp, thought last month’s phase 2 clinical test results for NNZ-2591 “exceeded expectations” in its ability to combat Phelan-McDermid syndrome (PMS).

“The PMS results bode well for the Phase 2 trials of NNZ-2591 for Pitt Hopkins syndrome, Angelman syndrome and Prader-Willi syndrome, results of which will be released during CY24.”

The team thought the results were even more convincing than the effectiveness of Daybue, which is a drug that Neuren already has on sale commercially.

“In the meantime, we expect to see continued strong sales growth for Daybue, which is licensed to NASDAQ-listed Acadia Pharmaceuticals Inc (NASDAQ: ACAD), who will next report in early February.”

ASX 200 shares have no memory

Just this example shows that what has happened to the share price in the past has no bearing on what the future might hold.

When investors are fearful because of a steep increase or decrease in price in recent times, that is called “anchoring”. And anchoring prevents rational decision-making.

The critical fact to remember is that stocks themselves have no memory. Their future direction has zero relationship to where they have been in the past.

Therefore there is no “right” or “wrong” time to buy a specific ASX 200 stock. 

If the business is going places and the metrics meet your investment criteria, then it’s ripe for adding to the portfolio as a long-term holding.

The post Is now the right time to buy this ASX 200 stock? Here’s my take appeared first on The Motley Fool Australia.

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More reading

• 3 pharma shares outshining the ASX index today
• ‘Materially undervalued’: 3 ASX shares Elvest is backing for a huge 2024
• The Neuren Pharmaceuticals share price is up 100% in 3 months: Can it keep rising?
• Here’s how I plan to build a second income in 2024
• The No. 1 ASX 200 shares of each market sector in 2023

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 Scott Phillips.

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