Tag: Motley Fool

  • These ASX 200 growth shares can rise ~30% to 55%

    Man with rocket wings which have flames coming out of them.

    Man with rocket wings which have flames coming out of them.If you’re on the lookout for big returns in 2024, then look no further.

    That’s because the ASX 200 growth shares listed below have been named as buys and tipped to rise very strongly.

    Here’s what analysts are saying about these highly rated shares:

    IDP Education Ltd (ASX: IEL)

    The team at Bell Potter is feeling very bullish about IDP Education and see it as a top ASX 200 growth share to buy right now.

    The broker likes the language testing and student placement company due to its dominant market position and successful track record with acquisitions.

    Combined with structural growth tailwinds, the broker believes its shares deserve to trade on a premium valuation. The broker explains:

    Whilst increased competition in English language testing is likely to impact IELTS volumes, we expect this to be partially offset by strength in the student placement segment supported by strong 1QFY24 student visa data in the Northern Hemisphere and structural growth tailwinds. In addition, the business has a solid dividend yield, relatively low working capital intensity, and has historically maintained strong cash conversion. IEL trades at a premium to its peers on a FY24e EV/EBIT of ~24x, however, we believe this is justified given its dominant market position, potential for M&A and successful track record.

    Bell Potter has a buy rating and $27.00 price target on its shares. This implies almost 30% upside for investors.

    Life360 Inc (ASX: 360)

    Over at Goldman Sachs, its analysts see big returns ahead for this ASX 200 growth share.

    The broker likes the location technology company due to its huge market opportunity and potential structural profitability tailwinds. It explains:

    We estimate 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. […] We see Life360 as reaching a volume/pricing inflection point, with potential structural profitability tailwinds on the horizon from a reduction in effective app store fees. Life360’s Subscription business currently trades at a discount to global subscription app peers when adjusting for its superior growth outlook.

    Goldman has a buy rating and $10.50 price target on its shares. This suggests potential upside of 55% from current levels.

    The post These ASX 200 growth shares can rise ~30% to 55% appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    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, Idp Education, and Life360. The Motley Fool Australia has recommended Idp Education. 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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  • Why Atlantic Lithium, Charter Hall, Droneshield, and Zip shares are pushing higher

    three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.

    three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.

    The S&P/ASX 200 Index (ASX: XJO) is having a tough session on Tuesday. At the time of writing, the benchmark index is down 0.9% to 7,427.9 points.

    Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

    Atlantic Lithium Ltd (ASX: A11)

    The Atlantic Lithium share price is up 2.5% to 41 cents. This is despite there being no news out of the Africa-focused lithium developer. However, it is worth noting that Macquarie remains positive on the company. This led to the broker reaffirming its outperform rating and 56 cents price target on its shares on Monday.

    Charter Hall Group (ASX: CHC)

    The Charter Hall share price is up 2.5% to $11.90. This appears to have been driven by a broker note out of Morgan Stanley this morning. According to the note, the broker has upgraded the property company’s shares to an overweight rating with an improved price target of $13.25. It believes the company is a great option for investors while bond yields fall.

    DroneShield Ltd (ASX: DRO)

    The DroneShield share price is up 8.5% to 40.2 cents. Investors have been buying this counter drone technology company’s shares following the release of its quarterly update. Droneshield reported a record $48 million of customer cash receipts and grants for the December quarter. This is five times larger than the next largest quarter on record. It also revealed a maiden profit for the 12 months.

    Zip Co Ltd (ASX: ZIP)

    The Zip share price is up 8.5% to 53.2 cents. This is despite there being no news out of the buy now pay later provider. Though, it is worth highlighting that its shares have fallen heavily since this time last month, so bargain hunters could be swooping in. Zip’s shares remain down 14% on a monthly basis.

    The post Why Atlantic Lithium, Charter Hall, Droneshield, and Zip shares are pushing higher appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    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 positions in and has recommended DroneShield, Macquarie Group, and Zip Co. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended DroneShield. 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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  • This ASX 200 lithium stock is a buy with ~30% upside and a ~5% dividend yield

    A man holding a cup of coffee puts his thumb up and smiles while at laptop.

    A man holding a cup of coffee puts his thumb up and smiles while at laptop.

    IGO Ltd (ASX: IGO) shares are having another poor session on Tuesday.

    In morning trade, the ASX lithium stock is down a further 1% to $7.50.

    This stretches its 12-month decline to a disappointing 49%.

    Should you buy this ASX lithium stock now?

    While it would take a brave investor to jump into the lithium industry right now, Goldman Sachs believes it would be a good move with IGO shares.

    Following a review of the industry this week, the broker has reaffirmed its buy rating with a reduced price target of $9.70 (from $10.60).

    Based on the current IGO share price, this implies potential upside of almost 30% for this ASX lithium stock over the next 12 months.

    In addition, the broker is forecasting a 36 cents per share dividend in FY 2024. If this proves accurate, it will mean an attractive yield of 4.8%.

    Though, it is worth noting that Goldman then expects dividends to be constrained to just 4 cents per share in FY 2025 and FY 2026.

    What did the broker say?

    Goldman laid out three key reasons why it thinks that IGO is an ASX lithium stock to buy right now. It said:

    We are Buy rated on: (1) Valuation, trading on ~0.9x NAV and pricing ~US$860/t spodumene (peers ~1x NAV and ~US$1,050/t), where near-term FCF yields FY24E remain attractive vs. peers, (2) Greenbushes is one of the lowest cost lithium assets, (3) TLEA dividends may de-risk nickel spend.

    The broker also highlights its belief that concerns over the Greenbushes sales deferrals are unwarranted. It adds:

    We continue to see market reaction to Greenbushes sales deferrals as overdone, where without a pricing mechanism reset, we see the rapid decline in spodumene prices driving Greenbushes pricing down to ~US$1,500/t for the Mar-24 quarter (bringing conversion closer to breakeven), and if spot persists potentially below ~US$1,000/t for the Jun-24 quarter, making the risk of ongoing sales curtailments beyond March unlikely in our view, and well ahead of our downside scenario.

    The post This ASX 200 lithium stock is a buy with ~30% upside and a ~5% dividend yield appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    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 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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  • Guess which small cap ASX stock is jumping 12% after record-breaking year

    A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price

    A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price

    DroneShield Ltd (ASX: DRO) shares are catching the eye on Tuesday.

    In morning trade, the small cap ASX stock is jumping over 12% to 41.5 cents.

    Why is this small cap ASX stock jumping?

    Investors have been scrambling to buy the counter drone company’s shares this morning after it released its latest quarterly update.

    According to the release, Droneshield achieved a record $48 million of customer cash receipts and grants for the December quarter. This is five times larger than the next largest quarter on record.

    This underpinned a record 12 months for the small cap ASX stock, with cash receipts and grants coming in at $73.5 million. This is five times greater than what was achieved in 2022.

    Management notes that 80% of revenues were from repeat customers. In addition, it highlights that the US and Australia markets represent its largest revenue contributors. Approximately 68% of revenue came from the US and 23% came from Australia.

    Pleasingly, this strong top line growth has allowed Droneshield to deliver a maiden profit before tax of $4 million. This compares to a $2.9 million loss before tax in 2022.

    But if you thought its growth was over, think again. The company advised that it has a $30 million contracted order backlog, over $400 million in its sales pipeline, and 85 qualified opportunities. It also has no overweight exposure to any one customer.

    At the end of the period, the small cap ASX stock had a cash balance of $57.9 million.

    DroneShield CEO, Oleg Vornik, commented:

    We are ready to deliver a strong 2024, after a record 2023. We are seeing continuing peak demand from our customer base globally, our competitive positioning and customer reputation are exceptional, and we are ready operationally to meet this demand.

    The post Guess which small cap ASX stock is jumping 12% after record-breaking year appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    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 positions in and has recommended DroneShield. The Motley Fool Australia has recommended DroneShield. 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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  • My $5 a day ASX second income plan for 2024

    Man holding a calculator with Australian dollar notes, symbolising dividends.

    Man holding a calculator with Australian dollar notes, symbolising dividends.

    When it comes to investing, you don’t have to start with big lump sums to build your wealth.

    Particularly now there are investment platforms out there that allow you to invest small amounts or even your spare change into the share market.

    In fact, if you were to give up a coffee a day and put $5 into ASX shares, you could generate big returns and even a second income over the long term.

    $5 a day into ASX shares

    Over the long term, the Australian share market has generated an average return of approximately 10% per annum.

    It has been possible to beat this return by investing in ASX shares with strong business models, positive long-term growth outlooks, and competitive advantages. Just look at Warren Buffett’s track record at Berkshire Hathaway (NYSE: BRK.B) to see this.

    But for the purpose of this article, we’re going to assume that you match the market return rather than beat it.

    With that in mind, let’s see what you happen if you were to invest $5 a day into ASX shares.

    Firstly, $5 a day equates to an investment of approximately $152 per month on average throughout the year.

    If you put this amount into ASX shares for 10 years and earned an average 10% per annum return, you would have grown your portfolio to just over $30,000.

    And thanks to compounding, if you were to keep going, you would grow your investment portfolio to $110,000 after a total of 20 years and over $315,000 at the 30-year mark.

    Making a second income

    Once you’ve built up your investment portfolio, you can start thinking about a second income.

    For example, if you were able to average a 6% dividend yield across your portfolio, your annual income would be as follows based on the above amounts:

    • $30,000 – $1,800 of income
    • $110,000 – $6,600 of income
    • $315,000 – $18,900 of income

    All in all, I believe this demonstrates that by coming up with a long-term investment plan, even with small contributions, it can lead to significant wealth in the future.

    The post My $5 a day ASX second income plan for 2024 appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    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 positions in and has recommended Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. 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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  • Buy Coles and these ASX dividend stocks

    Couple holding a piggy bank, symbolising superannuation.

    Couple holding a piggy bank, symbolising superannuation.

    ASX dividend stocks can be a great way to generate an income.

    But which ones could be buys?

    Three dividend stocks that analysts are tipping as buys this month are listed below. Here’s what you need to know about them:

    Baby Bunting Group Ltd (ASX: BBN)

    The first ASX dividend stock that analysts think could be a buy is baby products retailer Baby Bunting.

    Morgans is feeling upbeat about the company’s outlook following a tough period. This led to the broker recently increasing its “NPAT estimates by 17% in FY24 and 7% in FY25 as a result of cost-out initiatives and higher sales assumptions.”

    Its analysts are also predicting some generous dividend yields in the near term. They are forecasting fully franked dividends per share of 9.9 cents in FY 2024 and then 12.9 cents in FY 2024. Based on the current Baby Bunting share price of $1.89, this will mean yields of 5.2% and 6.8%, respectively.

    Morgans has an add rating and $2.50 price target on its shares.

    Coles Group Ltd (ASX: COL)

    Another ASX dividend stock that analysts have tipped as a buy is supermarket giant Coles.

    Citi is feeling positive about the company partly due to anti-theft measures. As a result of these actions, its analysts “expect the drag from theft on gross margin will begin to materially reverse in 2H24.”

    The broker expects this to underpin fully franked dividends of 64 cents per share in FY 2024 and 70 cents per share in FY 2025. Based on the current Coles share price of $15.79, this will mean yields of 4% and 4.4%, respectively.

    Citi has a buy rating and $17.50 price target on its shares.

    Rural Funds Group (ASX: RFF)

    Finally, over at Bell Potter, its analysts continue to believe that agricultural property company Rural Funds could be an ASX dividend stock to buy.

    Its analysts highlight that the company’s share price was recently “trading at its largest discount to market NAV since listing.”

    In addition, the broker is forecasting some big yields from its shares in the coming years. It is expecting dividends per share of 11.7 cents in FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.08, this will mean yields of 5.6% for investors.

    The broker has a buy rating and $2.25 price target on its shares.

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Coles Group and Rural Funds 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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  • True blue tech: The ASX shares I’d buy to build a Nasdaq index-inspired portfolio

    A man with a beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.A man with a beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.

    The ASX tech share space has been a wonderful place to find high-performing businesses. There are some great companies on the ASX, and owning enough of them could make them look like a Nasdaq-style portfolio.

    The Nasdaq is a US stock exchange that has a relatively high number of US tech and tech-related businesses involved.

    The ASX isn’t known for having large tech businesses like Microsoft, Apple, Alphabet and Amazon.com in the US.

    But, after years of strong growth, there are some sizeable ASX shares that I’d pick for a Nasdaq index-style portfolio.  

    How I’d narrow down the picks

    Investments that track indices don’t necessarily try to make a judgment call. When investors buy the Betashares Nasdaq 100 ETF (ASX: NDQ), they aren’t necessarily making a valuation call on any individual business. Instead, it’s a call on whether the whole group of companies can collectively keep doing well.

    Most ASX tech shares certainly aren’t trading on a cheap valuation, in terms of not having a low price/earnings (P/E) ratio.

    Plenty of tech-based businesses can achieve a higher-than-average gross profit margin (because of the intangible nature of software), which means revenue growth can lead to a lot more profit growth than an industrial business could achieve.

    There are a number of things I’d look for with these ASX tech shares. First, I’d want to see those businesses have good profit margins.

    I would want those ASX tech shares to have international growth revenue potential because that opens up a lot more growth beyond Australia’s shores.

    Ideally, those companies are growing revenue at a solid pace, or have the potential to grow revenue at a strong speed in the future.

    Plus, I’d hope to see those businesses have good balance sheets with manageable (or no) debt.

    My preferred ASX tech shares

    Four of the best ones that spring to mind are electronic PCB design software company Altium Limited (ASX: ALU), medical imagining software company Pro Medicus Ltd (ASX: PME), real estate portfolio business REA Group Limited (ASX: REA) and logistics software company WiseTech Global Ltd (ASX: WTC). I think all of these ASX tech shares would be at home in the Nasdaq Index.

    I think the above four are among the highest-quality companies on the ASX.

    If I were to expand the list to a few more names, I’d include TechnologyOne Ltd (ASX: TNE), Xero Limited (ASX: XRO), Webjet Limited (ASX: WEB), Siteminder Ltd (ASX: SDR) and Audinate Group Ltd (ASX: AD8).

    Many of these stocks have performed strongly over the last six to 12 months. I’m not expecting the next 12 months to be as strong, but the underlying business results could be compelling, particularly if they can keep growing strongly overseas.

    The post True blue tech: The ASX shares I’d buy to build a Nasdaq index-inspired portfolio appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Altium, Amazon, Apple, Audinate Group, BetaShares Nasdaq 100 ETF, Microsoft, Pro Medicus, REA Group, SiteMinder, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Audinate Group, BetaShares Nasdaq 100 ETF, SiteMinder, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Pro Medicus, REA Group, and Technology One. 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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  • Domino’s stock: buy, sell or hold?

    domino's pizza share pricedomino's pizza share price

    The Domino’s Pizza Enterprises Ltd (ASX: DMP) stock price has suffered significantly over the past two years. Hence is this the right time to sell or buy the ASX stock? While it’s down over 60% from 2021, it has gone up more than 17% in the last six months.

    Domino’s has a presence and has the exclusive master franchise rights in countries including Australia, New Zealand, Belgium, France, The Netherlands, Japan, Germany, Luxembourg, Taiwan, Malaysia, Singapore and Cambodia.

    Keep in mind that the Domino’s brand is owned by Domino’s Pizza Inc, a listed US company.

    What’s the latest?

    The latest trading update came at the annual general meeting (AGM) which revealed network sales growth of 12.7% and same-store sales (SSS) growth of 2.7% in the financial year to date at the time of November 2023. This may have helped the recent Domino’s stock price recovery.

    Same-store sales were positive in the financial year to date in 10 of the company’s 12 months, with Japan and Taiwan being the markets that were suffering.

    Its troubles have partly come from the fact that it lost some value-focused delivery customers in the past financial year after pricing changes (to try to offset inflation) did not resonate with customers.

    However, the removal of a delivery service fee, the launch of new products and a global partnership with Uber has meant Domino’s is serving more customers.

    Domino’s suggests consumers are “choosing high-quality pizzas as they seek an affordable treat in the face of cost of living pressures” which Domino’s is calling “treatflation”.

    The business said it’s on track to deliver against “a range of strategic initiatives to restructure the business, reduce costs and reinvest in rebuilding franchisee partner profitability.” This is encouraging them to look at opening more stores.

    Domino’s is expecting earnings in the first half of FY24 to be “materially higher” than the FY24 second half. It’s also expecting to report growth in the second half of FY24 compared to the first half of FY24.

    Over the long term, it’s aiming for 7,100 stores by 2033. This increased scale could add a lot to revenue, while an enlarged business could mean stronger profit margins too. Expansion into new, sizeable markets could accelerate it towards its targets.

    Domino’s stock price valuation

    According to Commsec, the business is trading at 29 times FY25’s estimated earnings. That is a fairly high valuation, but it’s much cheaper than a couple of years ago.

    I think it could be a decent time to buy Dominio’s stock because of the heavy fall, the resurgent trading activity, the reduced rate of inflation and the growing scale advantages it’s creating.

    The post Domino’s stock: buy, sell or hold? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    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 Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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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  • 2 ASX dividend shares with juicy yields to buy right now

    Man holding out Australian dollar notes, symbolising dividends.

    Man holding out Australian dollar notes, symbolising dividends.

    If you’re on the lookout for some big yields, then it could be worth checking out the ASX dividend shares listed below.

    Here’s what analysts are saying about these buy-rated shares:

    Dexus Convenience Retail REIT (ASX: DXC)

    Bell Potter thinks that this convenience focused property company could be an ASX dividend share to buy right now.

    This is due to its attractive valuation and generous forecast dividend yields. It explains:

    DXC offers one of the most attractive risk-adjusted propositions in the sector trading at an all time low c.37% discount to NTA, a FY24e DPS yield of 8.7% [now 8.1%] based on the mid-point guidance range despite lower sub-sector volatility where assets continue to transact providing price discovery and balance sheet comfort. Only office-centric REITs trade on wider metrics.

    Bell Potter is forecasting dividends per share of 20.9 cents in FY 2024 and 20.5 cents in FY 2025. Based on its current share price of $2.59, this equates to yields of 8.1% and 7.9%, respectively.

    The broker has a buy rating and $2.85 price target on its shares.

    Universal Store Holdings Ltd (ASX: UNI)

    Over at Morgans, its analysts believe that youth fashion retailer Universal Store could be a buy. It thinks the company’s shares are good value given its positive growth outlook. It said:

    UNI’s attractive array of medium-term growth prospects is undervalued at a single digit FY25 P/E. We reiterate our ADD rating and increase our target price.

    In addition, Morgans is forecasting fully franked dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store, this will mean yields of 5.9% and 6.6%, respectively.

    Its analysts have an add rating and $4.55 price target on its shares.

    The post 2 ASX dividend shares with juicy yields to buy right now appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    Motley Fool contributor James Mickleboro has positions in Universal Store. 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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  • Sliding Doors: Brainchip vs Xero shares

    A businesswoman weighs up the stack of cash she receives, with the pile in one hand significantly more than the other hand.

    A businesswoman weighs up the stack of cash she receives, with the pile in one hand significantly more than the other hand.

    In the film 1998 Sliding Doors, the viewer follows around Gwyneth Paltrow across two different storylines. In one storyline we see how her life unfolds if she catches her train, in the other we see what happens when she misses it.

    Investing can be a lot like Sliding Doors. When investors make an investment, they are choosing one ASX share over another. Each investment has its own potential storyline and each can shape your life and, more specifically, your wealth.

    So, let’s go back a year and see what would have happened if you had invested $10,000 into either Brainchip Holdings Ltd (ASX: BRN) and Xero Limited (ASX: XRO).

    Investing $10,000 in Brainchip shares

    I have been very vocal over the last couple of years, warning investors off Brainchip shares. So, hopefully I have prevented at least a handful of readers from losing significant wealth to this struggling semiconductor company.

    For example, over the last 12 months, Brainchip shares have lost 76% of their value. This means that a $10,000 investment would now be worth just $2,400.

    This has been driven by the company’s abject performance (less revenue than a thrift store) and an extremely challenging outlook due to its competition with absolute tech behemoths.

    In addition, the fact that none of its rivals, which spend billions on R&D each quarter, have lobbed a takeover offer its way or made a strategic investment, appears to indicate that they don’t believe its technology is a threat.

    What about Xero?

    If instead of buying Brainchip shares, you had put $10,000 into Xero shares, you would be celebrating today.

    Over the same period, thanks to its strong performance in FY 2023 and so far in FY 2024, the cloud accounting platform provider’s shares have risen 47%.

    This would have turned your investment into $14,700, which means you’re now $12,300 better off than if you had taken the other option.

    It also means that Brainchip shares would have to rise over 500% to just catch up. And with the company still looking severely overvalued with a $400 million market capitalisation, that looks like nothing short of wishful thinking.

    The post Sliding Doors: Brainchip vs Xero shares appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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