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The BHP Group Ltd (ASX: BHP) share price was out of form on Tuesday and dropped into the red.

The mining giant’s shares ended the day 2% lower at $38.39.

Why did the BHP share price tumble?

Investors were selling down the BHP share price today following the release of its first quarter update.

For the three months ended 30 September, the Big Australian recorded production declines across the majority of its operations.

For example, the company’s iron ore production was down 3% quarter on quarter and 4% year on year to 63.3Mt. Management blamed this on planned major maintenance and the COVID-induced impacts of temporary rail labour shortages.

Also recording a decline was its copper production, which was down 7% quarter on quarter and 9% year on year to 376.5kt. This was the result of lower volumes at Olympic Dam from planned (but delayed) smelter maintenance.

One highlight, which failed to lift the BHP share price, was its petroleum production. BHP’s petroleum production grew 2% quarter on quarter and 3% year on year to 27.5 MMboe. This was driven by increased production from Ruby and higher seasonal gas demand at Bass Strait.

The company also revealed that the proposed merger of its petroleum business with Woodside Petroleum Limited (ASX: WPL) is progressing to plan. But once again, this had little impact on the BHP share price.

FY 2022 guidance

Not even management reaffirming its guidance for FY 2022 could save the BHP share price from sliding lower today. This could be an indication that the market has doubts that it will deliver on its guidance after this subdued quarter.

BHP is guiding to iron ore production of 249Mt to 259Mt, copper production of 1,590kt to 1,760kt, and petroleum production of 99MMboe to 106MMboe.

The team at Macquarie Group Ltd (ASX: MQG) felt the update was soft but was to see its guidance remain unchanged.

It commented: “Importantly, guidance for all key commodities is unchanged with maintenance programs the key driver behind the metallurgical coal weakness.”

Macquarie currently has an outperform rating and $56.00 price target on the company’s shares.

The post BHP (ASX:BHP) share price tumbles on Q1 update appeared first on The Motley Fool Australia.

More reading

• Why BHP, Propel, Silver Lake, and Tabcorp shares are falling
• ASX 200 (ASX:XJO) midday update: BHP’s Q1 update, CSL’S R&D update
• BHP (ASX:BHP) share price on watch after Q1 update and reaffirming guidance
• Can the Macquarie (ASX:MQG) share price hit $240 by Christmas?
• BHP (ASX:BHP) share price lifts amid mine extension news

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 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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The Bank of Queensland Ltd (ASX: BOQ) share price edged lower today to finish at $9.28, a 0.54% dip from the previous close.

In fact, Bank of Queensland shares have been sliding this past week, after kissing their 52-week closing high last Monday.

Why have Bank of Queensland shares slipped lately?

The Bank of Queensand share price has been on a one-way ticket south in the last week, having shaved 5% off its gains in that time.

It seems investors have been selling off Bank of Queensland shares following the release of the company’s FY21 results last week.

The regional bank recognised an 83% year on year increase in cash net profit to $412 million in FY21. It also increased its full year dividend by more than 200% from FY20 to 39 cents per share.

These results came in ahead of the consensus earnings figures published by analysts for its FY21 results.

However, this momentum wasn’t enough to deter investors from concentrating on the bank’s earnings outlook in FY22.

Management anticipates its net interest margin to contract by around 5-7 basis points next year as interest rates continue to be bottom heavy into the foreseeable future.

As such, it appears Bank of Queensland forecasts a step down in its FY22 earnings guidance which may have spooked the investing herd.

Why is this important? First and foremost, the market prices a company’s individual shares based on a combination of past earnings performance and future earnings expectations.

Investors will either bid up the price of a share or drive it down based on the mechanics of this relationship.

In Bank of Queensland’s case, when looking in the rearview mirror, everything seems fine. It’s looking at the road ahead that seems to make investors nervous.

Given the company expects a substantial decrease in its earnings grade for the upcoming financial year, it comes as no surprise that the market – being relatively efficient in its pricing mechanisms – was quick to factor this into the bank’s share price.

As such, it appears investors have been selling off Bank of Queensland shares on the back of its FY22 earnings guidance, in the absence of any other price sensitive information.

Bank of Queensland share price snapshot

Bank of Queensland shares have posted a 23.5% return since the beginning of this year, extending their run over the last 12 months to 39%.

This is ahead of the S&P/ASX 200 Index (ASX: XJO)’s return of around 19% in that time.

The post Why have investors been selling off Bank of Queensland (ASX:BOQ) shares lately? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Can the BOQ (ASX:BOQ) share price hit $11 by the end of 2021?
• Which ASX 300 shares are leading the way mid-week?
• Why Bank of Queensland, Fortescue, Liontown, & Pact shares are dropping
• ASX 200 (ASX:XJO) midday update: BOQ results, A2 Milk shares jump

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The BetMakers Technology Group Ltd (ASX: BET) share price has fallen into a slump recently.

While there hasn’t been any price-sensitive announcement during this time, the wagering technology provider’s shares have tumbled 13% in the last month. For comparison, the S&P/ASX 200 Index (ASX: XJO) slipped a minor 0.4% during that time.

This leaves the market wondering what is going on with the $930 million ASX-listed company.

Anyone home?

After a flurry of announcements throughout much of the year, BetMakers has been in a state of radio silence since the end of August. At that time, the company revealed its annual report for FY21 whereby revenues were shown to have more than doubled over the prior year.

Shortly after that, BetMakers was added to the S&P/ASX 300 Index (ASX: XKO) on a quarterly rebalance. The inclusion came amid the company reaching a presence across more than 30 countries with more than 45 regulatory licenses.

Despite these positives, momentum appears to have shifted since 8 September 2021. Since this date, the BetMakers share price has crumbled 21%. Coincidentally, this trend began 5 days after the company’s last price-sensitive announcement.

It can be concerning for shareholders when communication becomes rare from the management team. Especially when it had previously been frequent.

At present, there have only been two notable announcements since the last price-sensitive release. These include a notice of options being exercised and a notice for the company’s annual general meeting (AGM).

Firstly, 859,322 fully paid ordinary shares were issued on 8 October upon the exercise of 862,500 unlisted options. These were related to the company’s long-term incentive plan. Secondly, the AGM will be held on Monday 22 November 2021 at 11am AEDT.

Other than these details, there has been little in the way of developments shared by BetMakers recently.

BetMakers share price snapshot

While the recent BetMakers share price performance might be underwhelming, the last year has been rewarding for shareholders. Riding the excitement of multiple acquisitions, the wagering company surged in value.

In the past year, the BetMakers share price is up 132%. Meanwhile, the benchmark index isn’t even close with a return of 19.3%.

The post The BetMakers (ASX:BET) share price has slumped 13% in a month. What’s going on? appeared first on The Motley Fool Australia.

More reading

• The BetMakers (ASX:BET) share price has fallen 6% this month

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology 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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Despite some volatility over the past month or so, the S&P/ASX 200 Index (ASX: XJO) has enjoyed a relatively solid month of returns. After today’s moves, the ASX 200 is now up by 1.73% since 20 September. Annualised, that represents a return of over 20%. Perhaps surprisingly, this return also trumps that of the Vanguard MSCI Index International Shares ETF (ASX: VGS).

Mostly due to the stunning performances of the US tech companies over the last decade or so, most Aussie investors have gotten used to the US markets outperforming the ASX 200 in recent years. But not for the past month. Against the ASX 200’s 1.73% return, VGS units have actually gone backwards, losing 1.66% since 20 September.

VGS is not solely a US-based exchange-traded fund (ETF). But the States do make up a good 69% of VGS’s total share allocation. The remaining weightings in this broad-based ETF come from Japan, the United Kingdom, Canada, France, and Switzerland, amongst a few others.

So how has the ASX 200 flipped the tables over the past month to beat VGS’s returns?

Well, let’s look at the performances of each index/ETF’s top holdings.

ASX 200 vs. VGS: Who comes out on top?

So according to the iShares S&P/ASX 200 ETF (ASX: IOZ), the ASX 200’s current top holdings are Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL) and BHP Group Ltd (ASX: BHP) with weightings of 8.33%, 6.46% and 5.46% respectively.

In contrast, VGS’s current largest holdings are Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN) with weightings of 4.16%, 3.55% and 2.62% respectively.

With the ASX 200, CBA shares are now up 3.06% over the past month. CSL is down by 3.62%, while BHP has lost 1.84%.

Apple is up 2.53% over the same period, with Microsoft gaining 4.41% and Amazon putting on 2.71%.

Confused? I wouldn’t blame you. On paper at least, it seems that the VGS ETF should be beating the ASX 200. Well, there could be a few possible mitigating factors at play as well.

Firstly, the Aussie dollar has risen by around 2% over the past month. This means that ETFs that hold assets denominated in US dollars become less valuable in Aussie dollar terms. And since VGS is listed in Australian dollars on the ASX, this would have dented its performance over the month.

VGS also paid out a dividend distribution recently. Unitholders received a distribution of 34.26 cents per share on 18 October (yesterday) with the ETF trading ex-distribution on 1 October. This would have further dented the on-paper returns of VGS, even though its investors benefitted from the payout.

But VGS unitholders shouldn’t be too put out. This ETF has still returned an average of 15.26% per annum over the past 5 years. IOZ’s ASX investors have only enjoyed a 10.28% per annum average over the same period.

The post Why is the Vanguard MSCI Index International Shares ETF (ASX:VGS) underperforming the ASX 200 lately? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts on Tuesday
• Why is the AFIC (ASX:AFI) share price underperforming the ASX 200 over the past month?
• Why is the VAS (ASX:VAS) share price underperforming the ASX 200 over the past month?
• ASX 200 (ASX:XJO) midday update: BHP’s Q1 update, CSL’S R&D update

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon, Apple, CSL Ltd., Microsoft, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon, Apple, and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Polynovo Ltd (ASX: PNV) share price has been on a trending decline over the past 6 months, falling by 40%. This comes as the medical device company has been relatively quiet on the news front.

At Tuesday’s closing bell, Polynovo shares finished the day up 3.61% to $1.865.

What’s been happening with Polynovo lately?

While no new announcements have been released since last month, Polynovo has been busy progressing its BARDA-funded burn study. BARDA is an acronym for the United States-based Biomedical Advanced Research and Development Authority.

The trial spans 20 United States and 5 Canadian burn centres for the clinical study of NovoSorb BTM. Polynovo aims for its NovoSorb BTM to be used as a standard of care in burn patients.

In addition, the company’s chief operating officer, Dr Anthony Kaye, resigned from his position last month. The Polynovo share price fell more than 10% that week after it was revealed Dr Kaye was returning to CSL Limited (ASX: CSL) in a more senior role.

However, Polynovo’s path to profitability is growing stronger following its robust FY21 results.

The company experienced growth across key financial metrics which led it to break even for the first time in its history.

Polynovo expects continued momentum to run into FY22 across a number of geographical markets. These include the United States, Europe, the United Kingdom, the Middle East, Asia, Australia, and New Zealand.

Its NovoSorb graft is expected to see sales surge in FY22, with “70% of burns centres now having purchased” the product.

Furthermore, Polynovo intends to expand its headcount and enter new markets, particularly within the European Union.

Nonetheless, the Polynovo share price has slumped. This is possibly due to bearish sentiment by investors which has caused selling pressure.

Polynovo share price summary

Despite today’s gain, Polynovo shares are down more than 25% for the past 12 months, and 50% in 2021.

Polynovo has a market capitalisation of roughly $1.24 billion and has approximately 661.4 million shares outstanding.

The post Why is the Polynovo (ASX:PNV) share price having such a tough time of late? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares down more than 50% in 2021
• Why these 3 ASX shares all hit 52-week lows today
• Why has the Polynovo (ASX:PNV) share price tanked 15% in 3 weeks?
• Why the Polynovo (ASX:PNV) share price is edging higher today
• Why the Polynovo (ASX:PNV) share price is sitting at a 52-week low

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Bluescope Steel Limited (ASX: BSL) share price edged lower today to finish trading in the red at $20.03 apiece.

That marks a 5% down-step in the steel producer’s shares in the past week, despite there being no price-sensitive information for the company in that time.

So what’s happened? Let’s investigate to find out.

Why is the Bluescope Steel share price dropped 5% in a week?

In the absence of any market-sensitive information, we have to look to Bluescope’s underlying commodity markets to understand what’s driving the bolus of its price action lately.

Bluescope derives the bulk of its revenue from domestic and international steel sales. The price of steel has been on a strong rally these past 12 months, having climbed 53%.

However, it has been volatile these past few months, and after regaining some ground in the period of August to October, the price of steel has once again consolidated to the downside.

Steel peaked on 8 October at US$923/tonne and has since made a sharp downturn, now trading 6% lower at US$870/tonne.

Bluescope is an ASX resource share that produces a commodity, meaning its share price has a unique relationship to fluctuations in the price of the commodity it sells – in this case, steel.

That’s because it is considered a price taker, and must accept the pricing levels of the markets it sells into, which are often determined by the unseen forces of supply and demand, amongst others.

Alas, due to this relationship, the Bluescope Steel share price will fluctuate as the price of steel – and other related industries such as construction – fluctuate as well.

With this relationship in mind, and given the recent pullback in steel pricing since the start of October, it starts to build the picture as to what might be fuelling the Bluescope steel share price lately.

Bluescope Steel share price snapshot

The Bluescope Steel share price has had a difficult year to date, however, has posted a return of around 15% since January 1.

It has rallied 36% in the last year, well ahead of the S&P/ASX 200 index (ASX: XJO)’s return of around 19% in that time.

The post The BlueScope (ASX:BSL) share price has dropped 5% in a week. What’s happening? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• These were the 5 worst performing ASX 200 shares in September
• What this leading broker thinks of the BlueScope Steel (ASX:BSL) share price
• BlueScope Steel (ASX:BSL) share price sinks 7% despite strategy update

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Peninsula Energy Ltd (ASX: PEN) share price had a strong Tuesday, further adding to its weekly gain.

At market close, the energy producer’s shares are up 5.46% to 29 cents apiece. This means that over the past week, its shares have now zipped more than 25% higher.

What’s driving Peninsula shares higher?

Investors have been buying up Peninsula shares along with its peers, as the uranium sector is up. A strong uptick in oil and gas prices has led nuclear energy to be a possible solution as a secure, emission-free power source.

France, which uses 70% of its electricity from nuclear energy, recently announced plans to build small nuclear reactors by 2030. The government sees nuclear power as a key to reducing global carbon emissions and be used for export to neighbours.

In addition, Japan is seeking to restart its nuclear power plants to achieve its net-zero goal of eliminating greenhouse gases. During this year, the country rebooted the first nuclear reactor since the Fukushima disaster.

In September, the International Atomic Energy Agency upgraded its projection for nuclear energy. The organisation now expects global nuclear-generating capacity to double by 2050.

As a result, the spot price for uranium has soared through the roof to reach US$48.10 a pound this month. This brings it in striking distance to break its 9-year high of US$50.80 achieved last month.

Peninsula owns the Lance Uranium Projects in Wyoming, in the United States. The company is currently transitioning its production method from alkaline to an industry-leading low pH in-situ recovery process.

This comes as the United States Government has ramped up efforts in restoring its competitive advantage in nuclear energy.

Under the American Nuclear Infrastructure Act (ANIA), the US Department of Energy will be restricted to only buy uranium recovered from facilities licensed by the Nuclear Regulatory Commission. This in turn not only strengthens the domestic uranium market but also preserves the US’ nuclear fuel supply chain.

While only a handful of companies will be able to supply material into the uranium reserve, Peninsula’s wholly-owned US subsidiary, Strata Energy is one of them.

Peninsula share price snapshot

It’s been an outstanding 12 months for Peninsula investors, with its shares accelerating over 350%. In 2021, the company’s share price has been just as impressive, jumping 160% across the period.

On valuation grounds, Peninsula commands a market capitalisation of roughly $296.3 million, with approximately 996 million shares on its books.

The post Why did the Peninsula (ASX:PEN) share price leap 5% on Tuesday? appeared first on The Motley Fool Australia.

More reading

• ASX uranium shares are surging this week. Here’s why
• Why the Peninsula Energy (ASX:PEN) share price is rocketing 20% today
• Why ASX uranium shares are bouncing back on Friday
• How did ASX uranium shares perform in September?
• Why the Peninsula Energy (ASX:PEN) share price tumbled 25% from multi-year highs

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Altium Limited (ASX: ALU) share price edged higher in afternoon trade to finish the day at $35.60 apiece. That’s a 2.36% gain on yesterday’s closing price.

It tops off a stellar run for the computer software company, whose share price has gained more than 7% in the past 2 weeks. The S&P/ASX 200 Index (ASX: XJO) has climbed 1.7% during that period.

There’s been no market-sensitive information from the company lately. However, it’s worthwhile taking a dive in and seeing what’s been driving the Altium share price in the past 2 weeks.

Despite a choppy year to date, brokers say it’s a buy

Although the Altium share price has been a net underperformer since January 1, it still hasn’t escaped the radar of analysts at leading investment firms.

Investment banking giant Citi have a buy rating and $34.50 price target on Altium shares, citing the company’s FY22 guidance and platform growth as key levers to its valuation.

Not only that, Citi’s modelling indicates Altium’s Octopart search engine segment saw a roughly 70% growth in site visits from the year prior in September.

Citi reckons this will carry through to the company’s earnings results, and reflect favourably on the Altium share price.

What else is weighing in?

It’s also worth noting that the S&P/ASX 200 Information Technology index (ASX: XIJ) has climbed around 6% in the past two weeks. Additionally, the wider S&P/ASX All Technology Index (ASX: XTX) has ticked 5.5% higher as well.

This indicates strength across the broad ASX tech sector. This perhaps stems from volatility in the broad indices underscored by changing bond yields, a foreseeable energy crisis and other inflationary concerns.

While the dust settles on the US 10-year Treasury yield after it rallied to its highest level since June, investors appear to have regained confidence in growth-type tech shares once more, as capital rotates back into ASX-listed tech names.

This is after they originally took a hit due to the effect rising US bond yields have on the valuations of high-growth companies, whose cash flows are set to grow out into the future (versus the present).

Consequently ASX tech shares have been surfing the volatility wave, and now appear back in a cyclical upswing.

It appears this strength has carried across to the Altium share price, given the lack of price-sensitive market updates in its growth engine.

Altium share price snapshot

The Altium share price has been an underperformer this year to date, and has posted a return of just 4.7% since January 1.

Consequently it is 9% in the red over the last 12 months, well behind the broad index’s return of around 19 in that time.

The post Why has the Altium (ASX:ALU) share price rallied 7% in 2 weeks? appeared first on The Motley Fool Australia.

More reading

• These ASX tech shares are lighting up the ASX 200 today
• Leading brokers name 3 ASX shares to buy today
• Here’s why ASX 200 tech shares are surging today
• Top broker names Altium (ASX:ALU) share price as a buy
• These were the best performing ASX tech shares in September

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium. The Motley Fool Australia owns shares of and has recommended Altium. 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 Zip Co Ltd (ASX: Z1P) share price is making up for lost ground after a poor performance on Monday.

Zip shares managed to close 5.19% higher at $7.10 on Tuesday, propping up its weekly performance to a gain of 3.65%.

What happened to the Zip share price?

Zip delivered an upbeat first-quarter update on Monday, delivering record figures across most key operating metrics. Some highlights for the quarter ended 30 September include:

• Revenue rose 89% on the prior corresponding period to a record $136.8 million
• Transaction volume jumped 101% to a record $1.9 billion
• Transaction numbers surged 177% to a record 14.7 million
• Active customers increased 82% to 8.0 million
• Active merchants increased 71% to 55,200

Zip’s strong growth was headlined by its US performance where revenues grew 182% to $67.1 million. This was backed by a 204% increase in transaction volumes to $955.4 million and a 165% increase in transactions to 5.3 million.

The company continued to execute on its international expansion strategy with a strategic investment in ZestMoney for India, organically going live in Mexico, launching in Canada, and completing its Middle East Spotii acquisition.

Despite the seemingly positive announcement, the Zip share price finished Monday’s session down 1.75% to $6.73.

Zip bounces back on Tuesday

The Zip share price rebounded strongly on Tuesday, closing 5.19% higher at $7.10.

This move was on the back of above average volumes, with 9.28 million shares trading hands compared to its 10-day average of 6.12 million.

The ASX-listed BNPL sector has remained largely uneventful in the past few months, with most players trading sideways.

That said, US-listed rival Affirm Inc (NASDAQ: AFRM) managed to surge 7.17% on Monday night to a fresh all-time high of US$157.25.

Affirm has outperformed most ASX-listed BNPL players, rallying 62% year-to-date and up 32% in October alone.

The post Zip (ASX:Z1P) share price rallies 5% on Tuesday appeared first on The Motley Fool Australia.

More reading

• Why Bapcor, Cochlear, Novonix, and Zip shares are rising
• Leading brokers name 3 ASX shares to sell today
• What these brokers think of the Zip (ASX:Z1P) share price after its update
• These are the 10 most shorted ASX shares
• ASX 200 (ASX:XJO) midday update: Aristocrat’s $5bn acquisition, Zip falls on Q1 update

Motley Fool contributor Kerry Sun 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 Affirm Holdings, Inc. and ZIPCOLTD FPO. 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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While the Woolworths Group Ltd (ASX: WOW) share price is having a decent run over the last month — up 2.26% in a month, there’s another ASX supermarket that’s rocketing above it, and even the Coles Group Ltd (ASX: COL) share price.

Those are the shares of Metcash Limited (ASX: MTS). The IGA, Foodland, Mitre 10, and Cellarbrations brand owner is up 5.83% over the last 30 days. That’s higher than Woolworths and Coles, the latter up 5.32% in a month. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.39% lower during that time.

Let’s take a closer look.

Why this company is outperforming the Woolworths share price?

As Motley Fool has previously reported, expert opinion is pessimistic on the Woolworths share price.

Credit Suisse has a sell on the company with a price target of around $31. That suggests the broker believes that Woolworths shares are going to drop by more than 20% over the next 12 months. It thinks it’s overvalued for its expected earnings and potential (limited) growth. Several others also have the company at ‘hold’ – valuing its shares at about $40.

Metcash, meanwhile, is the stock to buy – at least according to some brokers.

UBS currently rates Metcash shares as a buy, with a price target of $4.60. A change of consumer habits appears to have helped the business including higher levels of local shopping. Some of these changes could be permanent.

The broker believes Metcash could pay a grossed-up dividend yield of 6.5% in FY22.

What else is affecting Woolworths?

This month, Woolworths was in the sights of the Australian Parliament, specifically about the pay and working conditions of its delivery drivers, including its partnership with Uber Eats.

Last Monday, Australian Labor Senator Tony Sheldon accused Woolworths of turning a blind eye to the conditions to which Uber Eats delivery employees are subject. Correspondingly, Senator Sheldon purported that the multibillion-dollar ASX-listed company is neglecting its responsible sourcing standards in the process.

This news may have been a drag on the Woolworths share price as its shares were down on the same day.

Woolworths share price snapshot

Over the past 12 months, the Woolworths share price has increased 15.77%. Year-to-date, shares in the company are up 16%. Its 52-week high is $44.06 and its 52-week low is $35.96.

Woolworths Group has a market capitalisation of approximately $48 billion.

The post Why this supermarket is outperforming the Woolworths (ASX:WOW) share price lately appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX:WOW) share price edges lower following share buy-back completion
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Motley Fool contributor Marc Sidarous 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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