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There are some high-quality ASX shares that may be worth pursuing in November 2021 according to some brokers.

Those brokers are always on the lookout for potential investments that they believe are opportunities.

Share prices are constantly changing, so it can open up a potential investment quite quickly, if investors are able to jump on them.

With that in mind, the below two ASX shares are highly rated by brokers at the moment:

Nextdc Ltd (ASX: NXT)

Nextdc operates as a data centre-as-a-service provider. It says that it is building the infrastructure platform for the digital economy, delivering critical power, security and connectivity for global computing providers, enterprise and government.

It’s currently rated as a buy by at least five brokers, including the analysts at Macquarie Group Ltd (ASX: MQG), which currently rates it as a buy with a price target of $16.10. That suggests the broker believes that Nextdc could rise by around 37% over the next 12 months, if the broker is right.

Macquarie thinks that Nextdc may be able increase its profit margins and it also thinks that the ASX share may be able to expand offshore.

In FY21, Nextdc’s data centre services revenue grew by 23% to $246.1 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 29% to $134.5 million, beating the top end of management’s guidance.

The operating cashflow surged 148% to $133.2 million, whilst capital expenditure was down 18% to $301 million with a “strong ongoing focus on capital management”.

Contracted utilisation and the number of customers continues to increase as it makes progress developing its new data centres.

Nextdc is expecting more growth in FY22. Data centre services revenue is expected to grow to a range of between $285 million to $295 million. That means it’s expecting growth of at least 15.8%.

Meanwhile, underlying EBITDA is expected to be in the range of between $160 million to $165 million. That suggests an increase of at least 19%.

Bapcor Ltd (ASX: BAP)

Bapcor is one of the largest auto parts businesses in the Asia Pacific region. It has numerous businesses including Burson, Autobarn, Midas and a number of specialist wholesale businesses like Truckline. The ASX share also has a growing presence in Asia with the purchase of a quarter of Tye Soon as well developing a (currently) small network of Bursons in Thailand.

It’s currently rated as a buy by at least seven brokers. One of the brokers that likes Bapcor is Citi, which has a price target of $8.75 on the business. That suggests a potential rise of approximately 10% over the next 12 months.

Citi thinks the FY22 first quarter update showed how reliable Bapcor’s demand is. The broker points to various growth plans that Bapcor has in place including growing in Asia and its plans to keep increasing its network of outlets.

In that quarterly update, Bapcor said that it has seen a “solid” start to FY22, with the overall group revenue flat in the first quarter of FY22 compared to the first quarter of FY21. Whilst stores are/were affected by the lockdowns in NSW, Victoria, the ACT and NZ, management think the result demonstrated the “resilience and non-discretionary nature of Bapcor’s businesses”.

Margins have been slightly hurt at the start of the financial year, but it’s expecting margins to revert when lockdowns cease, which they predominately now have.

The ASX share itself said that it’s working on three core areas. It’s driving the expansion of its network footprint, both physical and online. Next, it is supplementing market-leading brands with Bapcor’s own brand products. Finally, the auto parts business is looking to realise the benefits and efficiencies across the company.

Based on Citi’s numbers, the Bapcor share price is valued at 20x FY22’s estimated earnings.

The post Brokers think these 2 top ASX shares are buys in November 2021 appeared first on The Motley Fool Australia.

More reading

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• 2 ASX dividend shares rated as buys by brokers
• Top brokers name 3 ASX shares to buy next week
• Why A2 Milk, Adairs, Bapcor, and Kogan shares are racing higher
• Why Bapcor, Cochlear, Novonix, and Zip shares are rising

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 owns shares of and has recommended Bapcor and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a very disappointing note. The benchmark index sank 1.45% to 7,323.7 points.

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

ASX 200 expected to storm higher

The Australian share market looks set to have a very positive start to the week. According to the latest SPI futures, the ASX 200 is expected to open the day 68 points or 0.9% higher this morning.  This follows a solid end to the week on Wall Street, which saw the Dow Jones rise 0.25%, the S&P 500 climb 0.2%, and the Nasdaq push 0.3% higher.

Westpac full year results

The Westpac Banking Corp (ASX: WBC) share price will be on watch today when it releases its full year results. According to a note out of Morgans, its analysts are expecting cash earnings of $5,237 million. But perhaps more importantly, the broker continues to expect the banking giant to announce a $5 billion off-market share buyback.

Oil prices rise

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a solid start to the week after oil prices pushed higher on Friday night. According to Bloomberg, the WTI crude oil price is up 0.9% to US$83.57 a barrel and the Brent crude oil price has risen 0.1% to US$83.72 a barrel. Oil prices were down over the week amid rising oil inventories in the US.

Gold price sinks

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week in the red after the gold price sank on Friday night. According to CNBC, the spot gold price fell 1% to US$1,783.90 an ounce. A rallying US dollar weighed on the price of the precious metal.

Macquarie shares rated neutral

The Macquarie Group Ltd (ASX: MQG) share price could be fully valued according to analysts at Goldman Sachs. According to the note, the broker has retained its neutral rating and lifted its price target to $196.80. Goldman was impressed with its half year results but feels its shares are expensive at 21x forward earnings.

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

More reading

• Here’s why the Bank of Queensland (ASX:BOQ) share price tumbled 5% in October
• Could the Westpac (ASX:WBC) share price be about to take off?
• These were the worst performing ASX 200 shares last week
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• These 3 ASX 200 shares are topping the volume charts on Friday

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

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There are a few e-commerce ASX shares that are growing very quickly that may be worth considering in November 2021.

At the moment, some of these companies are investing heavily to achieve high rates of long-term growth. However, the underlying profitability could be quite high. Cutting out the large network of physical retail stores (and all the associated costs of running shops) could be really helpful.

That’s why these two ASX e-commerce ASX shares could be interesting ideas:

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is already a leading online retailer of furniture and homewares. But the company is nowhere near done, it wants to become the largest player in the whole industry, both online and offline.

It’s growing very quickly. In FY21, revenue rose 85% year on year to $326.3 million. In the period of 1 July 2021 to 27 August 2021, revenue had increased another 49%.

The business said that it’s experiencing four different tailwinds at the moment. There’s the ongoing adoption of online shopping due to structural and demographic shifts. Next, these trends are being accelerated because of COVID-19. There is the benefit of an increase in discretionary income due to travel restrictions. Finally, there has been strong housing market growth.

This e-commerce ASX share is focused on strengthening its customer proposition, built around having the biggest and best range of furniture and homewares, combined with a “great” customer service experience.

It’s investing heavily in marketing to win new customers and grow its brand awareness. But the 12-month marketing return was “healthy” at 2.3x. This is helping increase the value of each customer. In FY21, revenue per active customer rose 12% year on year due to customers repeat buying more often and spending more when they do.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is another e-commerce ASX share that is growing very quickly. It says that it sells around 10,800 products from approximately 260 brands.

It’s now a business that offers an integrated content, marketing and retail platform.

Just like Temple & Webster, Adore Beauty is growing rapidly. In FY21, its revenue grew 48% to $179.3 million. Then, in the first quarter of FY22, revenue grew by another 25% to $63.8 million.

Its customer numbers continue to climb. Active customers increased by 24% to 874,000 in the FY22 first quarter and there was returning customer growth of 63% year on year. Management believe that returning customers provide a strong foundation for future growth. Those returning customers become more valuable each year as they spend on the platform, increasing both their basket size and order frequency over time.

There are a number of areas that Adore Beauty is working on including scaling its mobile app, building owned marketing channels and community, and expanding its loyalty program.

Adore Beauty says that it continues to benefit from the ongoing structural shift to online, which has been accelerated by the recent COVID-19 lockdowns.

The e-commerce ASX share wants to grow and cement its online market leadership, whilst also expanding its range of products. Connecting with potential consumers is a large part of the strategy, which is why the company was pleased that its Beauty IQ podcast surpassed three million downloads.

Another way that Adore Beauty plans to grow scale and profit margins is by launching a private label brand, which is on track to be launched in the third quarter of FY22.

The business believes it’s in a large and growing $11 billion market.

It’s currently rated as a buy by the broker UBS, with a price target of $6 with expected continuing growth in FY22.

The post 2 leading ASX e-commerce shares that could be buys in November 2021 appeared first on The Motley Fool Australia.

More reading

• 3 explosive ASX tech shares to buy in November
• 3 exciting ASX growth shares analysts love
• 3 reasons why the Adore Beauty (ASX:ABY) share price could be a buy
• 2 ASX shares that could be strong buys
• 3 small cap ASX shares to watch

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 shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Bank of Queensland Limited (ASX: BOQ) share price fell around 5% in October 2021 in a month that the S&P/ASX 200 Index (ASX: XJO) was largely flat.

During the month, the regional bank released its FY21 result. Often, investors like to partly base their thoughts on a business on how it performed in the latest financial year.

Here are some of the highlights from BOQ’s FY21 report:

BOQ’s FY21 result

The regional bank reported that its statutory net profit after tax (NPAT) jumped 221% to $369 million. Cash earnings after tax also rose quickly, going up 83% to $412 million. In earnings per share (EPS) terms, it rose by 51% to 74.7 cents.

This profit result was driven by increased net interest income and a credit to the loan impairment expense of $21 million. However, this was partly offset by higher operating expenses. Excluding the ME Bank acquisition, total income rose 5% to $1.18 billion.

BOQ’s net interest margin (NIM) increased by 1 basis point to 1.92% including ME Bank and grew 4 basis points to 1.95% excluding ME Bank. The improvement was largely driven by lower funding costs and deposit mix, partially offset by market competition and the ongoing impact of a low interest rate environment.

The actual net interest income, excluding ME Bank, rose by 6% for the year.

Operating expenses rose due to higher business volumes and the building of its new digital bank and other technology projects.

The loan impairment expense improved thanks to a better economic outlook and improvements in data quality relating to collateral. Concerns about loan impairments seemingly had a major impact on the BOQ share price during the COVID-19 crash.

The bank said it has made progress to sustainable profitability and the result showed momentum with four consecutive halves of improving performance.

ME Bank was bought for $1.325 billion during the year. The aim is to create an alternative to the big banks. It’s expecting to add low double digits to cash EPS, including the synergies, in FY22.

BOQ said that ME Bank brings together strong complementary trusted brands and it broadly doubles the retail bank and provides geographic diversification.

Outlook for the BOQ share price

Firstly, the bank said that it’s cautiously optimistic that Australia remains well placed for economic recovery, characterised by house price rises and growth in consumer spending and business investment. It remains focused on sustainable profitable growth.

Whilst it is expecting lending volume growth, the NIM could decline by between 5 basis points to 7 basis points as competition continues and the low interest rate environment remains. Expenses are expected to grow by 3%, which will be offset by accelerated integration synergies.

It’s going to remain prudent with capital and provisioning. Management said that the business has a strong capital position and expects its CET1 ratio to remain above 9.5%.

In terms of broker opinions, Citi rates the BOQ share price as a buy, with a price target of $10.50. The broker believes that BOQ is priced at 12x FY22’s estimated earnings with a grossed-up dividend yield of 6.7%.

The post Here’s why the Bank of Queensland (ASX:BOQ) share price tumbled 5% in October appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
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• Will inflation pressure your ASX shares in 2022? Here are Bell Asset’s strategy tips
• The biggest risk to global growth and ASX 200 returns in 2022

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 Bruce Jackson.

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Are you interested in adding some more ASX shares to your portfolio?

Three ASX shares that could be worth considering next month are listed below. Here’s what you need to know about them:

Appen Ltd (ASX: APX)

The first ASX share to consider is Appen. This tech company has a million-plus team of crowd sourced experts preparing the data that goes into artificial intelligence (AI) and machine learning (ML) models. It does this for some of the biggest tech companies in the world such as Google and Facebook. Unfortunately, COVID-19 impacted demand materially, leading to a sharp slowdown in its growth. However, things appear to be improving. For example, Facebook has just announced plans to increase its AI and ML spending materially.

Citi remains positive on the company. It has a buy rating and $17.10 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

Another ASX share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies. During the pandemic its poker machine business struggled because of casino closures, whereas its digital business flourished and delivered strong growth. Pleasingly, now casinos are open again, both businesses are pulling together, which appears to have positioned the company well for growth over the 2020s. As has the recently announced plan to acquire London-listed leading global online gambling software and content supplier, Playtech, for $5 billion.

Morgans was pleased with the acquisition. It currently has an add rating and $52.50 price target on the company’s shares.

Goodman Group (ASX: GMG)

A final ASX share to consider buying is Goodman Group. It is a leading integrated commercial and industrial property group that owns a high quality portfolio of global assets. Positively, many of Goodman’s properties have exposure to structural tailwinds such as ecommerce and the digital economy. As a result, they look likely to be in demand with customers for a long time to come. This should be supportive of strong rental income and distribution growth over the next decade.

Citi is also a fan of Goodman. The broker currently has a buy rating and $26.00 price target on its shares.

The post 3 fantastic ASX shares that could be buys in November appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Is the Appen (ASX:APX) share price dirt cheap?
• 2 ASX shares to boom from new shopping habits: experts
• Why is the Aristocrat (ASX:ALL) share price dipping on Monday?
• These were the best performing ASX 200 shares last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen 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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If you’re wanting to invest in the tech sector but aren’t sure which shares to buy, then you might want to consider exchange traded funds (ETFs).

There are a number of ETFs out there that allow investors to buy a slice of some of the world’s biggest and brightest tech companies.

One that could be worth considering is the BetaShares Asia Technology Tigers ETF (ASX: ASIA).

Why this tech ETF?

The the BetaShares Asia Technology Tigers ETF gives investors exposure to some of the largest tech companies in the Asian market.

Due to how technological adoption in Asia is surpassing the West, the companies included in this ETF could be well-placed for growth over the next decade. At present there are a total of 50 companies included in the fund. Among its largest holdings you’ll find Alibaba, Infosys, JD.com, Meituan Dianping, Pinduoduo, Samsung, and Tencent.

In respect to the latter, Tencent is a multinational technology conglomerate and one of the largest companies in the world. It is best known for its communication and social platforms, Weixin, WeChat and QQ. In August, Tencent reported a 23% increase in half year revenue to US$42.3 billion. Underpinning this growth was a total of 1.251 billion monthly active users across its Weixin and WeChat platforms and QQ’s 590.9 million monthly active users.

Another company in the fund is Meituan Dianping. It was founded in 2010 by Wang Xing as a copy of group buying company Groupon. Since then, it has shaken off its tag as the Groupon of China and now dwarfs it in size. During the June quarter, the company reported 628.4 million transacting users on its platform. They use its app to connect with local businesses for food deliveries, hotel bookings, movie tickets, and countless other services.

Concerns over a crackdown in the Chinese tech sector has dragged the ETF lower this year. While this is disappointing, it could be a buying opportunity for long term investors.

The post Here’s a highly rated tech ETF for ASX investors in November appeared first on The Motley Fool Australia.

More reading

• Why Betashares Asia Technology Tigers ETF (ASX:ASIA) could be a good investment
• 2 high quality ETFs for investors in October

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers 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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November 2021 might be a good month to think about some potentially exciting ASX growth shares.

Businesses that are growing quickly might be able to give shareholders an opportunity to achieve good returns.

Companies that are launching more products or expanding geographically give themselves a bigger addressable market to target.

With that in mind, here are two to think about:

Bubs Australia Ltd (ASX: BUB)

Bubs is a leading goat milk infant formula business. It also sells adult goat milk products, infant food and cow milk infant formula. Most recently, Bubs launched a range of cow milk powder products for the whole family.

The business is currently experiencing a turnaround after some difficulties relating to demand for its infant formula.

The ASX growth share’s FY22 first quarter for the three months to 30 September 2021 showed several statistics of high growth. Total gross revenue of $18.5 million was up 96% year on year and 45% quarter on quarter.

Bubs infant formula gross revenue increased 124% across all markets year on year. It was up 64% year on year. Infant formula is the high margin part of the business.

Adult goat milk powder total gross revenue increased 100% year on year and 61% quarter on quarter.

Looking at some of the more specific growth areas, in Australian grocery and pharmacy retailers, Bubs infant formula went up 35% year on year. China gross revenue grew 156% (making up 53% of quarterly revenue), with Bubs infant formula daigou sales increasing 648% year on year and 265% quarter on quarter.

International (excluding China) gross revenue went up 489%, contributing 24% of quarterly sales. Currently this predominately relates to south east Asia, but it has established a business in the USA too.

City Chic Collective Ltd (ASX: CCX)

City Chic is fast becoming one of the world’s biggest specialty retailers of clothing, footwear and accessories for plus-size women.

The City Chic share price has risen by 144% over the last year. But several brokers still rate it as a buy, including Citi and Morgan Stanley, which have price targets on the ASX growth share of $7.20 and $6.65 respectively.

Those brokers think that City Chic has a good growth opportunity in the US, particularly as one of its competitors (called Torrid) is doing well there too.

Another positive from Citi is that City Chic is doing well at turning itself into an international force with a high level of online sales.

The company has acquired a few good businesses in recent times, including Evans in the UK, Avenue in the US and Navabi in Europe. City Chic’s global customer base grew 61% year on year to 1.07 million and the website traffic grew 68% to 58.1 million.

In terms of the digital sales, online revenue grew 49.3% and made up 73% of total sales. City Chic’s FY21 sales revenue increased 32.9% to $258.5 million whilst underlying profit rose 80.6% to $24.9 million.

Morgan Stanley thinks that the City Chic share price is valued at 34x FY23’s estimated earnings.

The post 2 ASX growth shares that could be buys in November 2021 appeared first on The Motley Fool Australia.

More reading

• Bubs (ASX:BUB) share price higher on new product launch
• Compelling opportunities: 2 quality ASX shares to consider
• The Bubs (ASX:BUB) share price is up 40% in 6 days. Here’s why
• A2 Milk (ASX:A2M) share price ticks higher as UBS increases holding
• ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

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

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Macquarie, its analysts have retained their underperform rating and cut their price target on this infant formula company’s shares to $5.20. Macquarie made the move following the release of the company’s investor update. Its analysts highlight that A2 Milk’s medium term outlook is very weak. It also notes that there is still significant risk and uncertainty with management’s growth targets. The A2 Milk share price ended the week at $6.25.

Coles Group Ltd (ASX: COL)

Analysts at UBS have retained their sell rating and $16.50 price target on this supermarket giant’s shares. This follows the release of the supermarket operator’s first quarter sales update. Although Coles delivered a better than expected update, it isn’t enough for a change of rating. UBS believes the outlook for food retailing in Australia is deteriorating. The Coles share price was fetching $17.14 at Friday’s close.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and cut their price target on this mining giant’s shares to $11.00. Goldman was disappointed with Fortescue’s performance during the first quarter. Not only did the miner fall short of the broker’s shipments estimates, its price realisation and product mix were well under its expectations. In light of this and its belief that its shares are still overvalued, Goldman isn’t in a rush to change its rating. The Fortescue share price ended the week at $13.93. Though, it is worth noting that not everyone is bearish. See here for a bullish view.

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

More reading

• Top brokers name 3 ASX shares to buy next week
• Brokers rate these 2 ASX dividend shares as top buys today
• Is the Fortescue (ASX:FMG) share price a buying opportunity?
• Fortescue (ASX:FMG) share price wobbles as crackdown hits iron ore prices
• Leading broker tips Fortescue (ASX:FMG) share price to sink to $11

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended A2 Milk. 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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By now, most ASX investors would know that the S&P/ASX 200 Index (ASX: XJO) has enjoyed a pretty successful year in 2021 so far. The ASX 200 is now up roughly 9.6% year to date (as of Friday’s market close). But what might be a little more surprising for most investors is how much better the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has performed over the year.

Year to date, ANZ shares are up a very robust 23.96%. That’s more than double the broader market.

So what’s behind this surprising outperformance?

Well, to understand that, let’s go back to last year. 2020 was a shocking year for ANZ shares. This ASX bank ended up going backwards over the calendar year by approximately 11.8%. In stark contrast, the ASX 200 ended up losing just 1.45% in 2020.

Last year also saw ANZ slash its cherished dividend payments. This ASX bank ended up only paying out 60 cents per share in dividends over 2020, a massive drop from the $1.60 it shelled out in 2019.

So it’s not hard to see why investors shunned ANZ shares in 2020.

ANZ share price rises after dividends restored?

This year has seen ANZ’s dividend bona fides restored somewhat. In July, ANZ paid out its interim dividend for 2021, which came to 70 cents per share, fully franked. That’s more than what ANZ paid out over all of the previous year. Just this week, ANZ also announced its upcoming final dividend will be worth 72 cents per share (also fully franked). That’s getting pretty close to its 2019 levels.

Since ANZ underperformed the ASX 200 by such a large margin in 2020, it’s perhaps not too surprising to see it bounce back stronger in 2021 so far, especially with such an enthusiastic return to paying out healthy dividends.

But one final thing to note. While ANZ’s performance has smashed the market, it’s actually pretty poor for an ASX bank share. In contrast to ANZ’s year-to-date performance, Commonwealth Bank of Australia (ASX: CBA) has appreciated by 27.5% over the same period. National Australia Bank Ltd (ASX: NAB) shares have gained 27% gain, while Westpac Banking Corp (ASX: WBC) takes the major bank cake with gains of 32.5% in 2021 so far.

Sorry to rain on your parade with that, ANZ shareholders!

At ANZ’s last share price, this ASX bank has a dividend yield of 3.73%.

The post The ANZ share price is up 24% so far in 2021. Here’s why appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Leading broker says ANZ (ASX:ANZ) share price is a buy
• 5 things to watch on the ASX 200 on Friday
• ASX 200 (ASX:XJO) midday update: ANZ result impresses, Fortescue higher
• ANZ (ASX:ANZ) share price higher after beating expectations in FY21

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

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

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target on this banking giant’s shares to $31.00. This follows the release of a stronger than expected full year profit in FY 2021. And while the broker was disappointed with a contraction in ANZ’s home loan lending during the second half, it isn’t enough to dampen its overall positive view. Morgans believes ANZ is well placed to benefit from structural tailwinds in Institutional banking. The ANZ share price ended the week at $28.14.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Citi reveals that its analysts have retained their buy rating and $18.50 price target on this mining giant’s shares. This follows the release of the company’s quarterly update last week. Citi was pleased with the update and notes that Fortescue’s production and costs were in line with expectations and its guidance is unchanged. The Fortescue share price was fetching $13.93 at Friday’s close.

PointsBet Holdings Ltd (ASX: PBH)

Analysts at Bell Potter have retained their buy rating but trimmed their price target on this sports betting company’s shares to $12.50. According to the note, the broker thought PointsBet’s quarterly update was solid. It notes that the company delivered strong double digit percentage growth in each of its key metrics. However, the broker concedes that the loss of market share in the US took the shine off the update. Its analysts believe this was driven by competitors significantly increasing their marketing spend ahead of the commencement of the NFL season. Nevertheless, Bell Potter remains positive on the company’s long term outlook and has held firm with its buy rating. The PointsBet share price ended the week at $8.25.

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

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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. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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