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The Flight Centre Travel Group Ltd (ASX: FLT) share price soared to an 18-month high in September. The travel agent has been busy targeting a return to leisure and corporate profitability as conditions improve.

This has led Flight Centre shares to track 30% higher over the past month. On the other hand, the S&P/ASX 200 Index (ASX: XJO) has slumped by more than 4%.

International travel resumes

Flight Centre advised in its mid-September presentation that sales revenue increased month-on-month during FY21. In particular, leisure and corporate recovery in the United States during Q4 FY21 ticked up a notch.

The company noted that corporate transaction numbers were at 50% of pre-COVID levels, representing around 40% of the total transaction value.

In addition, vaccination programs have gained momentum, with travel restrictions being either relaxed or removed in key travel markets. As such, immediate and strong rebounds are being experienced.

Fully vaccinated passengers are being offered more freedoms for trans-Atlantic travel and to other international destinations. For example, United States travellers can fly to the United Kingdom, and Fiji is opening its borders to vaccinated passengers from November.

Flight Centre said more countries are accepting they have to live with the virus, with various international routes restarting.

What about Australia?

Australia’s accelerated vaccination program is on track, with selected international travel set to resume as early as next month. Some 80.5% of over 16s have received their first dose, with 58.4% having had a second dose. It is estimated Australia will reach the magic 80% for the double jab on 6 November.

Flight Centre is preparing for a strong comeback as a more agile business while airlines begin to restore services.

Quarantine-free travel to countries with high vaccination rates could also be on the cards. This includes nations such as the United Kingdom, United States, Fiji, Japan, Singapore, and possibly others.

In Australia, home quarantine is being trialled in some states with early success so far. Flight Centre sees this as a major step forward as it removed customer fears of being forced into expensive hotel quarantine.

Flight Centre share price summary

It’s been a solid year for the Flight Centre share price. Since its September gains it’s continued to fly, reaching another new 18-month high of $25.28 on Tuesday.

In 2021 alone, its shares have risen by around 45%, reflecting positive sentiment in a quick recovery of the travel sector. In early trade today they are up 2.37% to $23.35.

Flight Centre has a market capitalisation of roughly $4.55 billion, with close to 200 million shares on its registry.

The post Why did the Flight Centre (ASX:FLT) share price have such a great month in September? appeared first on The Motley Fool Australia.

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• Why A2 Milk, CBA, Flight Centre, & Magellan’s shares are sinking
• Which ASX shares are leading the way in the ASX 300 today?
• These are the 10 most shorted ASX shares
• Which ASX 300 shares are on the move for the start of the week?

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 recommended Flight Centre Travel 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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Ethereum (CRYPTO: ETH) struggled to hold onto any of its short-term price gains in September.

Ether is the world’s number 2 crypto in terms of total value. It’s current market cap of US$421 million is surpassed only by Bitcoin‘s (CRYPTO: BTC) US$1.04 trillion total market valuation.

With the price gains so far in October, Ethereum now represents 18.3% of the total cryptocurrency sphere, according to data from CoinMarketCap.

But then the first 8 days of October have been good for Ether investors, with the price up 20% so far this month.

September was a different story.

What happened with the Ethereum price is September?

Ethereum started last month trading for US$3,420. By the end of September, it was worth US$2,960, down some 13%. That compares to a 10% fall in the Bitcoin price over that same time.

While it wasn’t a particularly volatile month as far as crypto price moves go, Ether investors would have experienced plenty of ups and downs.

By 3 September the price had climbed to US$3,962. But those gains wouldn’t last.

Ethereum reached monthly lows on 22 September, trading for US$2,703. That’s 32% below its 3 September price. Certainly no investment for the faint hearted.

How is Ether different from Bitcoin?

There are a number of significant differences between Ethereum and Bitcoin.

Bitcoin is largely seen and used as an alternative to government issued money. As a digital token that may be resistant to inflationary forces. You can increasingly use it to purchase items. And many crypto investors choose to hold onto Bitcoin in hopes the value will continue to march higher over time.

Ethereum, on the other hand, has more real-world applications. Via its own crypto – that’s Ether – it serves as a platform for other cryptocurrencies and importantly can be used to execute decentralised contracts.

As CoinMarketCap explains, “Ethereum’s own purported goal is to become a global platform for decentralized applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime and fraud.”

Ether is up 2% over the past 24 hours, currently trading for US$3,590.

The post Here’s what happened to the Ethereum price in September appeared first on The Motley Fool Australia.

More reading

• How these top 3 cryptos performed in the first quarter of FY22
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• AMP Capital’s chief economist on the future of Bitcoin and altcoins

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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 Super Retail Group Ltd (ASX: SUL) share price jumped higher this morning after it got upgraded by a leading broker.

The ASX retailer rallied 4.8% to $12.04 when the S&P/ASX 200 Index (Index:^AXJO) added 0.7% at the time of writing.

Other retailers are also trading in the green. The Harvey Norman Holdings Limited (ASX: HVN) share price gained 1% and Flight Centre Travel Group Ltd (ASX: FLT) share price added 2.1%.

Super Retail share price zooms on broker “buy” upgrade

The Super Retail share price is getting an extra boost from a bullish report by UBS. The broker thinks this is the time to pick up Super Retail shares as it upgraded the auto and outdoor retail group to “buy” from “neutral”.

UBS pointed to several tailwinds to justify the upgrade. Firstly, a survey by UBS found that consumes have record spending intentions. That’s great news for retailers as we head into the all-important Christmas shopping period.

Tailwinds from stronger economy and jobs

Secondly, UBS economists are feeling even more confident about the labour market. Most of Australia is still in lockdown and there are already many industries complaining of the lack of workers. What will happen as NSW and Victoria emerges from COVID-19 restrictions?

Then there is the $120 billion in “hidden” stimulus. This is the amount Australian households have saved due to the lack of spending options and government support payments.

Speaking of which, government payments are expected to continue, although this will change from support to stimulus payments, added UBS.

Super Retail share price invited to the COVID reopening party

Finally, there’s greater confidence that Australia will reopen for business. The rate of vaccinations and comments by the NSW and Victorian governments on following the national roadmap should give us hope.

These positives will benefit many ASX retail shares, but the Super Retail share price may be better placed to benefit than most.

Super Retail share price in sweet spot

“COVID-19 restrictions have seen a shift in consumer spend to retail vs experiences (e.g. travel, eating out),” said UBS.

“With an end to lockdown and COVID-19 restrictions expected to see this reverse. The prospect of strength in retail & travel is contrary to recent discretionary retail share price underperformance and P/E multiple de-rating compared to reopening exposures.”

The Super Retail share price is one of the underperformers. Its shares have fallen by around 11% since it posted its full year results in August.

This meant that the retailer’s FY22 price-earnings (P/E) multiple has derated to about 13 times from 15.6 times.

Re-rating opportunity

“Yet SUL enjoys reopening leverage with the consumer expected to return to recreation activities (BCF and Macpac), sporting activities (Rebel) and driving holidays (SCA),” added UBS.

“Given its strong FY21 inventory position, a key advantage given global supply chain issues, and track record of EBIT margin expansion with strong sales (gross margin expansion due to availability issues, operating leverage), we expect SUL to enjoy a strong recovery post lockdown.”

The broker’s 12-month price target on the Super Retail share price is $13.50 a share.

The post Top broker upgrades the Super Retail (ASX:SUL) share price to buy appeared first on The Motley Fool Australia.

More reading

• Here’s what ASX futures are pointing towards on Thursday
• What is the BHP (ASX:BHP) share price outlook?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Wednesday

Motley Fool contributor Brendon Lau 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 Super Retail Group Limited. The Motley Fool Australia owns shares of and has recommended Harvey Norman Holdings Ltd. and Super Retail Group Limited. The Motley Fool Australia has recommended Flight Centre Travel 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 Sezzle Inc (ASX: SZL) share price is among the best performer on the All Ordinaries on Thursday morning.

At the time of writing, the buy now pay later (BNPL) provider’s shares are up 9% to $5.37.

Why is the Sezzle share price storming higher?

The catalyst for the rise in the Sezzle share price today was news that its service is now live with a major US retailer.

Overnight US giant Target announced the official launch of its buy now pay later offering with Sezzle and Affirm (NASDAQ: AFRM) ahead of the busy holiday season.

Target’s President of Financial and Retail Services, Gemma Kubat, commented: “With the help of two new partners — Sezzle and Affirm — we’ve added new payment solutions that let you buy what you need now, take advantage of our best deals, and pay at a pace that works well for you.”

“We know our guests want easy and affordable payment options that work within their family’s budget. Through our partnerships with Affirm and Sezzle, Target is investing in new financial tools that make our shopping experiences more flexible and personalized to guests’ needs, right in time for the holiday season.”

What impact could this have?

The deal with Target has the potential to boost Sezzle’s sales materially in the coming years.

The company notes that there are 1,909 Target stores across the US, with 75% of Americans living within 16km of one.

From its store network and online business, Target generated revenue of US$93.5 billion in 2020.

Anything else?

Also potentially giving the Sezzle share price a boost was an update on its Canadian operations.

Sezzle has advised that it has now reached the major milestone of 3,000 Canadian merchants and over 10,000 cross-border merchants. This comes after two years operating in the country.

Recent additions to its growing roster of retailers include Bentley, Stokes, Hart, FortNine, Umbra, Fairweather, JD Sports, size?, and EMERGE Commerce.

The post Why the Sezzle (ASX:SZL) share price is storming 9% higher on Thursday appeared first on The Motley Fool Australia.

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• ASX 200 tech shares set to slide as Nasdaq plunges 2%
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• The Sezzle (ASX:SZL) share price tumbled 13% in September. Is it a buy?
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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 Affirm Holdings, Inc. 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 Openpay Group Ltd (ASX: OPY) share price has been a strong performer on Thursday morning.

At the time of writing, the buy now pay later (BNPL) provider’s shares are up 13% to $1.44.

Why is the Openpay share price pushing higher?

Investors have been bidding the Openpay share price higher today following the release of an update on its US operations.

According to the release, the company has entered into a US$271.4 million asset-backed revolving debt facility with Goldman Sachs and mezzanine financing provided by Atalaya Capital Management.

The release notes that this warehouse facility will enable Openpay to fuel its expansion into the enormous US market. Management believes it represents a key milestone for the company as it looks to facilitate transactions for merchants and consumers in the country.

As part of the deal, Openpay will issue 1,022,271 warrants to Goldman Sachs. Each warrant is exercisable into one fully paid ordinary Openpay share at a subscription price of ~$1.30 per warrant. This represents the 30-day volume weighted average price on 5 October.

Management commentary

Openpay’s US CEO and Global Chief Strategy Officer, Brian Shniderman, was delighted with the news.

He commented: “We are thrilled to work with Goldman Sachs and Atalaya who will now deliver the funding to enable our growth in the US at scale. We will begin distributing BNPL in large volumes through major ecosystem partnerships like payments processors, and merchant aggregators requiring significant funding.”

“This is precisely what we shared as our plan with investors, and all part of our six Pillar Strategy. This facility is now set to grow our US business at a greater scale for the global company through this exciting US launch going live this month.”

This sentiment was echoed by Openpay’s US CFO, Efrat Yellin.

He added: “We are excited and honored for Goldman Sachs and Atalaya to serve as our foundational funding financial institutions. Working with these funders complements our solid balance sheet setting us up for our US launch. This facility will allow us to scale quickly and provide US consumers with funding for their various needs.”

Despite today’s decent gain, the Openpay share price is down a disappointing 40% since the start of the year.

Shareholders will no doubt be hoping this news is an inflection point for the Openpay share price.

The post Openpay (ASX:OPY) share price jumps 13% on US update appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX BNPL shares in September
• Openpay (ASX:OPY) share price up 5% on Kogan and Nissan deals

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

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The Altium Limited (ASX: ALU) share price has been a disappointing performer in 2021.

Since the start of the year, the electronic design software company’s shares are down 4.5%.

Why is the Altium share price underperforming?

The weakness in the Altium share price this year has been driven largely by its mixed performance in FY 2021.

Although Altium achieved its full year revenue guidance with a 1% lift to US$191.1 million, its earnings fell short of expectations due to weaker margins.

In addition to this, while management is confident on the company’s prospects in FY 2022 and is guiding to revenue growth of 16% to 20%, it has pushed back its US$500 million aspirational revenue target by a year to FY 2026.

Also weighing on Altium’s shares was its rejection of a takeover approach from Autodesk. The software giant tabled an offer believed to be around $40.00, but management wasn’t interested. It believed it significantly undervalued Altium’s prospects.

Is this a buying opportunity?

One leading broker appears to believe the underperformance of the Altium share price could be a buying opportunity.

According to a note out of Citi from last week, its analysts have a buy rating and $35.40 price target on the company’s shares.

Based on the current Altium share price of $32.98, this implies potential upside of 7.3% over the next 12 months.

Citi was pleased with the company’s guidance for FY 2022, particularly given the headwinds it is facing from its shift to subscriptions from perpetual licenses.

In addition to this, the broker is positive on Altium’s longer term growth potential. It expects this to be underpinned by the monetisation of its Altium 365 and Nexar platforms.

This could make it a tech share to consider in October.

The post Top broker names Altium (ASX:ALU) share price as a buy appeared first on The Motley Fool Australia.

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• These were the best performing ASX tech shares in September
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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 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 Wesfarmers Ltd (ASX: WES) dividend will finally hit the accounts of shareholders on Friday. This might be one of the few bright spots for Wesfarmers in recent months as its share price has plunged back down to 4-month lows.

The Wesfarmers share price closed at $54.07 on Wednesday, down almost 20% since its all-time high of $57.20 on 20 August.

What happened to the Wesfarmers share price?

The S&P/ASX 200 Index (ASX: XJO) topped out in mid-August after reaching all-time highs of 7,633.

The decline of Wesfarmers was consistent with that of the broader market.

The company’s FY21 full-year results was another major driver of its recent underperformance.

At face value, Wesfarmers had a standout year, delivering a 10% increase in revenue to $33,941 million, net profit after tax increased 16.2% to $2,421 million, as well as a final dividend of 90 cents per share.

The overall Wesfarmer dividend for FY21 came in at 178 cents, up 17.1% on FY20.

But looking ahead, Wesfarmers management flagged the prospect of weaker near-term earnings as a result of recent lockdowns and the cycling of elevated sales.

“Given the impact of lockdowns in recent months and the prospect of continued trading restrictions, earnings in the Group’s retail businesses during the first half of the 2022 financial year may be below the prior corresponding period,” management said.

What else do investors need to know about the Wesfarmers dividend?

Last week, Wesfarmers announced that $57.06 will be the allocation price for shares issued through the dividend investment plan for its final dividend.

According to the release, shareholders representing 11.72% of Wesfarmers shares on issue had a valid election to participate in the dividend investment plan for the period.

Shares are expected to be issued to participants of the dividend investment plan on 7 October.

But wait there’s more …

Wesfarmers’ FY21 results also revealed a significant capital return to shareholders in the form of a 200 cents per share payment on top of its final dividend.

The proposed capital return is subject to shareholder approval at the company’s 2021 annual general meeting.

If all goes to plan, the capital return date is expected to have a record date of 19 November 2021 and payable by 2 December 2021.

The post The final Wesfarmers (ASX:WES) dividend will be paid out today. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here’s what happened to the Wesfarmers (ASX:WES) share price in September
• Here’s why the Wesfarmers (ASX:WES) share price is down 4% in a week
• 2 beaten-up ASX shares now ready to rally: expert
• Wesfarmers (ASX:WES) share price gains as ACCC approves Bunnings acquisition

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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers 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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Investors might have a chance at making back some of yesterday’s losses on Thursday. ASX futures are indicating an upwards move in Australian shares this morning. This follows a reasonably green night on the US market overnight.

Ahead of the market open, S&P/ASX 200 Index (ASX: XJO) futures are suggesting a 0.53% increase in the benchmark index.

What happened overnight?

Although it was a shaky start to trading on Wall Street last night, sentiment shifted as the market moved closer to the closing bell. In turn, all three major US indices finished above their previous close. Specifically, the Dow Jones Industrial Average added 0.3%. Meanwhile, the S&P 500 and Nasdaq composite gained 0.4% and 0.5% respectively.

Some standout performers on the US market overnight included Mastercard Inc (NYSE: MA), Paypal Holdings Inc (NASDAQ: PYPL), PepsiCo, Inc. (NASDAQ: PEP), and Microsoft Corporation (NASDAQ: MSFT). These companies gained 1.6%, 1.5%, 2.6%, and 1.5% respectively.

The late rally in markets overnight comes amid signs the US senate is nearing a temporary agreement to allow an extension of the federal debt ceiling into December. This would at least avoid tarnishing the United States reputation for never missing a debt repayment.

Additionally, ASX futures are pointing higher as analysts at National Australia Bank Ltd. (ASX: NAB) suggest that Europe’s gas crisis is “far from over”. While this could be met with optimism in ASX-listed energy producers today, it is also balanced out with the US energy secretary revealing considerations of selling strategic oil reserves to dampen oil prices.

Moving ASX futures today

Oil prices dropped 2.35% to US$77.09 a barrel last night. However, oil and gas shares will likely still be in focus as concerns of energy supply linger.

Furthermore, gold producers will be at the top of some watchlists today following strength in the precious metal. The spot price of gold inched 0.2% higher to US$1,765 an ounce. As a result, big-name ASX-listed gold miners such as Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN) could benefit from the price lift.

Finally, ASX futures could be boosted higher as a large swathe of Aussie companies dish out dividends to shareholders today. Such companies include Breville Group Ltd (ASX: BRG), South32 Ltd (ASX: S32), and Wesfarmers Ltd (ASX: WES).

The post Here’s what ASX futures are pointing towards on Thursday appeared first on The Motley Fool Australia.

More reading

• What is the BHP (ASX:BHP) share price outlook?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• Technology shares lead the battle to lift the ASX 200 on Wednesday

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. 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 Mastercard, Microsoft, and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Mastercard and PayPal Holdings. 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 Woodside Petroleum Limited (ASX: WPL) share price has been a strong performer in recent weeks.

For example, since the end of August, the energy producer’s shares have risen a sizeable 28%.

Why is the Woodside share price up 28% in five weeks?

There have been a couple of catalysts for the rise in the Woodside share price over the last five weeks.

Chief among them is a rise in oil prices. Due partly to supply disruptions following Hurricane Ida in the Gulf of Mexico, oil prices hit multi-year highs this week.

Also giving the Woodside share price a boost was news that it will be merging with the petroleum assets of BHP Group Ltd (ASX: BHP).

Can its shares keep rising?

The good news is that one leading broker believes Woodside’s shares can keep rising from here.

According to a note out of Morgans, its analysts have an add rating and $29.00 price target on its shares.

Based on the current Woodside share price of $25.04, this implies potential upside of 16% over the next 12 months.

Why is the broker bullish?

Morgans is bullish on the Woodside share price due largely to its merger with BHP’s petroleum assets.

It notes that this transforms Woodside and makes it a top 10 global energy producer.

The broker commented: “We believe WPL has benefited from being in the right place, at the right time. With: 1) BHP/WPL having an existing relationship, 2) BHP eager to boost its ESG profile, and 3) WPL being a quality operator (safe hands which is important for BHP). From an economic standpoint we think WPL is clearly getting the better of the deal, with synergies not baked into deal metrics and BHP willing to accept a discount. The deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves, with EBITDA of US$4.7bnpa and growth options.”

The post Top broker sees 16% upside for the Woodside (ASX:WPL) share price appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Top broker names 2 of the best ASX shares to buy in October
• ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound
• What’s driving oil prices higher and which ASX shares are benefitting?
• Here’s why the Woodside (ASX:WPL) share price is climbing 3% today

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

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The ASX shares in this article could be two of the leading opportunities to think about for the long-term.

Some businesses are taking advantage of growing demand for certain services or products, particularly in this era of increasing digitalisation.

Share prices are always changing and profit is (hopefully) growing, which can mean different ASX shares can opportunities at different times:

Betashares Global Cybersecurity ETF (ASX: HACK)

This is an exchange-traded fund (ETF) that provides investors exposure to the global cybersecurity industry. There is a mixture of businesses in this portfolio, ones that are worldwide leaders and ones that are emerging players.

There are a total of 36 positions in the portfolio. Some of the biggest holdings are: Palo Alto Networks, Accenture, Cisco Systems, Crowdstrike, Okta and Tenable. The smallest positions are: Zix, Tufin Software Technologies, Ribbon Communications, OneSpan and A10 Networks.

Is this industry growing? It is. The global cybersecurity market was $137.63 billion in 2017. It’s expected to grow to $248.26 billion by 2023.

BetaShares notes that Australian investors currently have few local options for getting exposure to this fast-growing cybersecurity sector. With cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

In terms of geographic diversification, a vast majority (90.7%) of the portfolio is invested in businesses that are listed in the US, though the underlying earnings are geographically diverse. Another four countries have an allocation of more than 1%: Israel (3.4%), the UK (2.7%), Japan (1.5%) and France (1.2%).

Past performance is not an indicator of future performance. However, after including the management costs of 0.67% per annum, the ASX share has returned an average of 23.26% per annum since inception in August 2016.

Adairs Ltd (ASX: ADH)

Adairs sells bedding, homewares and furniture. It operates under two brands, Mocka and Adairs.

Looking at the valuation on Commsec, the Adairs share price is valued at just under 10x FY23’s estimated earnings.

It’s true that in the first seven weeks of FY22, Adairs saw a decrease in sales – it was down 11.7% on the same period in FY21. However, the sales were up 13.5% compared to FY20. Lockdowns are impacting store sales, though online sales continue to increase.

In the first seven weeks of FY22, Adairs online sales were up 12.9% and Mocka sales were up 16.1%.

FY21 saw total online sales of $187 million, which was 37.4% of the total. Total Adairs sales went up 28.5% for the year, with net profit rising 80.7% to $63.7 million.

The ASX share is expecting the gross profit margin to moderate in FY22 from the record highs achieved in FY21, though it’s still much higher than FY20. There are supplier cost increases and increased cost of sea freight.

One thing that is expected to help Adairs become more efficient and reduce costs is the new DHL-operated national distribution centre, which was scheduled to be completed at the end of September 2021. This is a “key component” of its omni-channel strategy to help customers shop how they want to with Adairs. It’s expected to result in annual savings of $3.5 million per annum.

The Adairs managing director and CEO, Mark Ronan, said:

The Adairs and Mocka teams are focused on developing and delivering exclusive products through our vertical supply chains supported by a great customer experience via our integrated omni-channel model. This focus on customer and product, together with our loyal Linen Lovers [membership] and our amazing teams, provide strong mitigants in these conditions and put us in a position to be able to continue to take market share. We have a very large addressable market and being omni-channel means the entire market is open to us.

The post Potential buys: 2 compelling ASX shares appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended ADAIRS FPO and BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO and BETA CYBER ETF UNITS. 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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