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Looking for a growth share or two to buy after the weekend break? Three that could be worth considering are listed below.

All three have been tipped to grow strongly over the 2020s. Here’s what you need to know about them:

Appen Ltd (ASX: APX)

The first growth share to look at is this leading developer of high-quality, human annotated datasets for machine learning (ML) and artificial intelligence (AI). It was growing at a very impressive rate until the pandemic led to the softening of demand from some of its biggest customers. Pleasingly, AI and ML markets are expected to rebound once the pandemic passes, which bodes well for Appen’s future.

Citi believes it is worth sticking with the company. It recently put a buy rating and $18.80 price target on Appen’s shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. Like Appen, it was hit hard by the pandemic. However, it has been tipped to bounce back strongly. Particularly given its increasingly popular software offering, strengthening market position, and a key acquisition in India.

UBS is very positive on the company’s outlook. It recently put a buy rating and $36.40 price target on its shares.

Life360 Inc (ASX: 360)

A final ASX growth share to look at is Life360. It is the growing technology company behind the Life360 family app. Life360 has also recently expanded into the wearables market via the acquisition of Jiobit, increasing its total addressable market and opening up cross selling opportunities to its 32.3 million Monthly Active Users.

Bell Potter currently has a buy rating and $10.75 price target on Life360’s shares. It sees plenty of opportunities to monetise its growing user base.

The post 3 ASX shares with bags of potential appeared first on The Motley Fool Australia.

More reading

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• 2 stellar ASX growth shares rated as buys
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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 Appen Ltd, Idp Education Pty Ltd, and Life360, Inc. 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 some small cap shares, then you may want to check out the ones listed below.

Here’s why the team at Bell Potter are positive on them:

Infomedia Limited (ASX: IFM)

Infomedia is a technology services developer and supplier of electronic parts catalogues and service systems to the automotive industry. In addition, the company provides information management and analysis for the Australian automotive and oil industries.

Bell Potter currently has a buy rating and $2.00 price target on its shares. This compares to the latest Infomedia share price of $1.71.

It commented: “Infomedia has underperformed the tech sector over the past 12-18 months due mainly to a reasonably large capital raising in May 2020 after which it sat on the cash for a year, an ordinary 1HFY21 result and more recently the resignation of the CFO. The company appears to have turned the corner, however, with a much better 2HFY21, a good acquisition and the appointment of a new CFO. In our view the stock is worth a revisit given it has underperformed, is not expensive and is not a crowded trade.”

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a medical technology company with a focus on breast imaging analytics and analysis products. These products improve clinical decision-making and the early detection of breast cancer.

The analysts at Bell Potter currently have a buy rating and $1.60 price target on its shares. This compares to the most recent Volpara share price of $1.21.

The broker is expecting strong growth in FY 2022, driven partly by the recent acquisition of CRA.

It explained: “Over the course of FY22 we expect record organic revenue growth as the company leverages is technology platform into an expanded base of customers. This includes numerous CRA only deals where the technology is integrated with the major electronic health record providers in the US.”

The post Broker names 2 small cap ASX shares to buy 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 Infomedia and VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Infomedia. 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 Afterpay Ltd (ASX: APT) share price has been marching higher these past few days, finishing the week’s trading 7% in the green.

That’s a complete reversal to how Afterpay began its walk to start September – it had a quick slip from $133.30 to $122.20 in just two weeks, before recovering.

Let’s take a closer look at what’s moving the soon-to-be acquired buy now pay later (BNPL) pioneer.

What’s up with the Afterpay share price since the Square deal?

Recall that US retail payments giant Square Inc (NYSE: SQ) recently agreed to purchase Afterpay in the largest transaction in ASX history – $39 billion.

It’s an all-scrip consideration that will see Square exchange its own shares, at a certain rate, for each individual share in the BNPL giant.

The exchange ratio is set at 0.375, meaning Afterpay shareholders will receive 0.375 Square shares for each individual share they own.

As it stands, this implies a valuation of A$137 per Afterpay share, after recent gains in Square’s share price on the US exchange.

These gains are important for the Afterpay share price – for each US$1 that Square’s share price goes up in value, the Afterpay’s implied valuation concurrently increases by 37.5 cents.

Square’s share price has gained 25% in the last 6 months and is up a further 4% in the past 5 days. Great news for Afterpay investors.

Given this growth in the new Afterpay owner’s market capitalisation – which now sits at US$122.6 billion – and factoring in this mathematical relationship, it starts to make sense as to why Afterpay shares have gained over the past week or so.

The above is spurred on by a weaker AUD versus the USD, which inherently enriches the valuation due to the exchange rate effect.

Investors appear to want a piece of the action, in the hope of nabbing Afterpay shares at a bargain as their valuation increases, in unison with Square’s share price.

If that is the case, then it stands to reason that the trend will continue, as the Square share price continues to march higher. It finished Thursday’s session 2% higher, at US$266.72.

Afterpay share price snapshot

The Afterpay share price has gained almost 80% in the past 12 months, with only 12% of that obtained this year to date.

In the last month, Afterpay shares are in the red. Not much had happened with Afterpay shares prior to this week, since the commotion after the Square deal was announced.

However, given the recent surge in Square’s share price, the Afterpay share price is booking gains once again.

The post What’s moving the Afterpay (ASX:APT) share price since the Square news? appeared first on The Motley Fool Australia.

More reading

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• Why the Afterpay (ASX:APT) share price is charging 4.5% higher
• The Square share price jumped 4% overnight. What could this mean for Afterpay (ASX:APT) shares?
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T 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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The Woodside Petroleum Limited (ASX: WPL) share price was up 1.9% in late afternoon trading on Friday. That came as the S&P/ASX 200 Index (ASX: XJO) was losing ground, down 0.35%.

It’s now been a bit over a month since the ASX 200 energy company reported its half-year results (H1FY21).

With oil prices trending steadily higher and forecast to potentially keep marching upwards from here, here’s a brief recap of those results and a look at how the Woodside share price has performed since reporting.

What half year results did the ASX 200 energy share report?

The Woodside share price was in sharp focus on 18 August when the company reported its half-year results for the period ending 30 June 2021.

Among the key metrics, Woodside went from a $4 billion loss in the prior corresponding half year to post a net profit after tax (NPAT) of $317 million.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at $621 million, up from an EBITDA loss of $5.2 billion in H1FY20.

The strong results saw management declare an interim dividend of US 30 cents per share. That was up 14% (in Aussie dollar terms) from the dividend paid in the prior corresponding half year.

Woodside also confirmed on the day that it was looking at acquiring all of BHP Group Ltd‘s (ASX: BHP) oil and gas assets.

Commenting on the strong half-year results, Woodside’s CEO, Meg O’Neil said:

Our revenue was buoyed by higher realised prices driven by the recovery in demand for LNG and oil. Sales volumes increased by 6% to 53.9 million barrels of oil equivalent for the half, as we increased trading activity in response to favourable market conditions.

How has the Woodside share price performed since reporting?

Despite the rebound in profits, the Woodside share price closed down 2.1% on the day it reported.

Since the market close on the day prior to reporting, Woodside’s shares have gained 7.1% to date.

For comparison, the ASX 200 is down 2.3% over that same period.

The post How has the Woodside (ASX:WPL) share price performed since reporting results? appeared first on The Motley Fool Australia.

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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 Webjet Limited (ASX: WEB) share price has taken off over the past month despite no announcements from the company.

However, September has been an exciting time for the travel industry and wanderlusting Australians as the pathway back to travel becomes clearer.

The Webjet share price finished Friday’s session trading for $6.14, which is 1.76% lower than Thursday’s close and 16.7% higher than its closing price on 24 August.

Let’s take a look at the news that might be driving Webjet’s stock higher.

Why is the Webjet share price flying recently?

The Webjet share price has performed brilliantly over the past month. And what’s boosting the online travel agent’s stock is likely also boosting the spirits of Australians in need of a holiday.

Late last month Qantas Airways Limited (ASX: QAN) led the pack in predicting the restart of international travel. The airline expects Australians to be back overseas by December. However, its international network won’t be fully operational again until April 2022.

That means this time last month, Webjet and the market had a strong indication of the direction and timeframe for the restart to international travel.

Then, on 31 August, Webjet announced its business-to-business accommodation service, WebBeds, has returned to profitability. The turnaround was driven by the easing of travel restrictions in North America and Europe.

Additionally, the number of Australians who have been vaccinated against COVID-19 has increased exponentially over the past 30 days. This time last month, 55.2% of Australians had received one jab and 32.3% were fully vaccinated. As of Friday, nearly 3 in 4 of us have had our first dose of a vaccine. Even better, more than half are double jabbed.

As the vaccination rate has sped up, the governments of NSW and Victoria have both flagged an end to lockdowns. Meanwhile, the Victorian Government has announced that it plans to open the state’s border to NSW in November.   

Finally, the Webjet share price may also be responding to news from the US. Just yesterday, the White House announced its plans to reopen its borders to fully vaccinated travellers from 33 countries in November.

Unfortunately for travellers, Australia is not on that list but it’s still good news for Webjet and its share price.

Thus, the past month has been a good one for the travel sector and by extension, Webjet shareholders.

The post The Webjet (ASX:WEB) share price is up 16% in a month. Here’s why. appeared first on The Motley Fool Australia.

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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 Webjet 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

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

Megaport Ltd (ASX: MP1)

According to a note out of Citi, its analysts have initiated coverage on this elasticity connectivity and network services interconnection provider’s shares with a buy rating and $20.00 price target. Citi likes Megaport due to its belief that it is well-placed to grow its revenue at a rapid rate over the next three years. This is thanks to multiple trends such as increasing multi-cloud adoption, infrastructure and computing getting more distributed, and increasing digitisation. Citi also expects operating leverage from the company as it scales. The Megaport share price ended the week at $17.72.

Northern Star Resources Ltd (ASX: NST)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this gold miner’s shares to $14.00. The broker made the move after lifting its gold price estimates for the medium term. Based on these forecasts, its analysts believe the company’s shares are undervalued. Macquarie also reiterates that Northern Star is its top large cap gold miner pick. The Northern Star share price was fetching $8.76 on Friday.

Transurban Group (ASX: TCL)

Analysts at Credit Suisse have upgraded this toll road operator’s shares to an outperform rating with an improved price target of $15.10. The broker was pleased with the company’s plan to acquire the remainder of the WestConnex project from the NSW government. Credit Suisse feels it is paying a fair price and expects the acquisition to support its future growth. The Transurban share price ended the week at $14.05.

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

More reading

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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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT 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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The AGL Energy Limited (ASX: AGL) share price was down 0.17% at market close on Friday, at $5.97 per share.

That was roughly in line with the broader S&P/ASX 200 Index, which failed to recoup its early day losses and finished the day down 0.37%.

It’s been 6 weeks now since the ASX 200 energy provider released its full 2021 financial year (FY21) results. With that in mind, we take a brief review of those results below, and have a look at how the AGL share price has been tracking since reporting.

What results did the ASX 200 energy share report for FY21?

The AGL share price was on investors’ radars before the opening bell on 12 August, the day the company reported its FY21 results.

Among the core metrics, AGL reported revenue of $10.9 billion. That was a 10% decline on revenue in FY20.

The power company’s underlying profits also fell 33.5% year-on-year to $537 million.

Management did declare a final dividend of 34 cents per share, unfranked. That brought the full year dividend to 75 cents per share, down 23.5% from FY20.

Commenting on the results, AGL’s CEO, Graeme Hunt said:

Our FY21 result reflects a challenging year for AGL Energy as we realised the impact of lower wholesale electricity prices, reduced electricity generation output at peak periods, and the roll-off of legacy supply contracts in Wholesale Gas.

The AGL share price could also have come under some additional pressure when the company confirmed it expected the demerger of its business into 2 entities – Accel Energy and AGL Australia – to be complete by the fourth quarter of this financial year.

How has the AGL share price performed since reporting?

The AGL share price closed down 5.5% on the day the company reported its FY21 results.

Since market close on 11 August, the day before reporting, AGL shares are down 21.1%.

By comparison the ASX 200 is down 3.2% over that same time.

The post How has the AGL (ASX:AGL) share price performed since reporting FY21 results? appeared first on The Motley Fool Australia.

More reading

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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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Could the Xero Limited (ASX: XRO) share price be good value as it’s currently at around $150?

The last couple of weeks has seen a fair bit of volatility for Xero shares, but that may just be normal for the share market. Looking at the price a month ago, it hasn’t changed much. But over the last six months the Xero share price has risen around 18%.

What brokers think of the Xero share price

Different brokers have different ratings on the cloud accounting software business.

For example, Credit Suisse rates Xero as a buy with a price target of $160. The broker reckons that Xero’s average revenue per user (ARPU) can increase in FY22 after the ASX tech share recently increased the subscription fee for subscribers. It also thinks that Xero can continue to grow its subscriber numbers at a good rate.

However, there are also brokers that think the opposite about the Xero share price. Analysts at Macquarie Group Ltd (ASX: MQG) rate Xero as a sell with a price target of $130. That suggests Macquarie believes that Xero shares could fell by more than 10% over the next 12 months, if the broker is right.

One of the most recent thoughts about that price target is that Xero’s global accounting software rival, Intuit, recently revealed it was buying Mailchimp for US$12 billion. Intuit said that the two businesses will “work to deliver on the vision of an innovative, end-to-end customer growth platform for small and mid-market businesses, allowing them to get their business online, market their business, manage customer relationships, benefit from insights and analytics, get paid, access capital, pay employees, optimize cash flow, be organized and stay compliant, with experts at their fingertips.”

Macquarie fears that Mailchimp may decide to cut ties with Xero, which would make Xero less useful to subscribers and therefore some may leave. Intuit could be more successful globally, weakening the ASX tech share’s prospects.

How much growth has the ASX tech share been reporting recently?

The Xero share price may be partly being driven by the recent results and acquisitions.

In FY21 it grew operating revenue by 18% to $848.8 million and grew subscribers by 20% to 2.74 million. Annualised monthly recurring revenue increased by 17% to $963.6 million. The gross profit margin increased from 85.2% to 86%. Free cashflow surged 110% to $57 million.

The business decided to acquire a few different businesses in recent times, including Planday, which is expected to contribute approximately three percentage points to operating revenue growth in FY22.

Planday is a workforce management platform, which, at the time of the acquisition, had more than 350,000 employee users across Europe and the UK. The software aims to simplify employee scheduling, allowing businesses to forecast and manage their labour costs.

Xero said that the acquisition would help grow its small business platform, helping subscribers deal with increasing compliance requirements, support more flexible forms of work and look after their people. When combined with Xero, it is able to provide insights to a business or advisor that help to adjust staffing levels to match trading conditions and control labour costs, which are often an employer’s largest expense.

The upfront payment for Planday was €155.7 million, whilst the total potential consideration (based on achievements) is €183.5 million.

The post Is the Xero (ASX:XRO) share price good value? appeared first on The Motley Fool Australia.

More reading

• 3 rapidly growing ASX tech shares to buy
• 2 very high quality ASX shares to own
• Is the Xero (ASX:XRO) share price heading down to $130?
• Top brokers name 3 ASX shares to sell next week
• Top brokers name 3 ASX shares to sell today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Xero. 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 has had its fair share of ups and downs since listing on the ASX at the end of 2009.

To be fair, it’s been more ups than downs, with the company’s value increasing 292% in the years since its initial public offering (IPO).

That doesn’t mean it hasn’t had some heavy downs during its run on the ASX.

Let’s take a closer look.

What were the worst trading days for the Zip share price?

The Zip share price has had multiple days where it has plummeted to close by double digits. Here are the 5 worst days since the buy now, pay later (BNPL) provider listed on the ASX.

1 September 2020

Zip shares fell a whopping 12.8% by the close of trade that day to finish at $7.99 per share. The catalyst for the drop was the announcement from US-based PayPal Holdings Inc (NASDAQ: PYPL) that it would be entering the BNPL space. Australia BNPL rival Afterpay Ltd (ASX: APT) also fell on the day by a substantial margin.

17 February 2021

The Zip share price fell 14.0% on this day and finished at $11.97. As Motley Fool reported at the time, there appeared to be three separate catalysts for the falling Zip shares. The first was general weakness across the tech sector at the time amid rampant fears of runaway inflation.

The second was potentially profit taking by investors looking to cash in on a good bet, and the third appeared to be investors looking to exit when it seemed unlikely the company would be listing in the United States anytime soon.

9, 12, and 18 March 2020

As anyone who was invested in the stock market at the time probably has seared into their memories, this was at the height of the COVID-driven market crash of last year. On these days, Zip lost a respective 17.6%, 18.8%, and 17.8% in value – all within the space of just 9 days!

Foolish takeaway

In terms of the highest fall percentage-wise, the worst day for Zip shareholders was 12 March 2020. However, in terms of market capitalisation loss, the worst trading for Zip was 17 February 2021.

Just under $1.1 billion was wiped from the company in a single day. This is the equivalent to Aussie Broadband Ltd’s(ASX: ABB) entire market cap as of writing.

The post When was the worst ever day on the Zip (ASX:Z1P) share price chart? appeared first on The Motley Fool Australia.

More reading

• Why Zip (ASX:Z1P) and these growth shares could be buys
• Why the Zip (ASX:Z1P) share price is up 11% in 2 days
• Why Champion Iron, Fortescue, Lake Resources, & Zip are racing higher
• ASX 200 (ASX:XJO) midday update: Evergrande news boosts market, Zip’s Indian investment
• Zip (ASX:Z1P) share price higher on India BNPL investment news

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. owns shares of and has recommended AFTERPAY T FPO, Aussie Broadband Limited, PayPal Holdings, and ZIPCOLTD FPO. 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 AFTERPAY T FPO. The Motley Fool Australia has recommended Aussie Broadband Limited 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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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 caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

DEXUS Property Group (ASX: DXS)

According to a note out of Citi, its analysts have retained their sell rating and $9.54 price target on this property company’s shares. Although the broker acknowledges that DEXUS has been diversifying its operations through recent transactions, it notes that offices still make up the majority of its rent. Citi has concerns over office rents due to structural headwinds. The DEXUS share price ended the week at $10.78.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Morgans reveals that its analysts have retained their reduce rating and cut the price target on this iron ore producer’s shares to $14.15. The broker believes that iron ore prices could weaken further from here due to lower demand in China. This is particularly the case for Fortescue’s lower grade ore. This is due to steel mills prioritising high grade to help minimise the amount of coke required against a backdrop of record hard coking coal prices. The Fortescue share price was fetching $15.34 at Friday’s close.

Premier Investments Limited (ASX: PMV)

Analysts at Goldman Sachs have retained their sell rating and lifted their price target on this retail conglomerate’s shares to $23.40. This follows the release of a full year result that fell short of its expectations. While Goldman has increased its FY 2022 and FY 2023 forecasts by over 10%, it still doesn’t see enough value in its shares to change its rating. The broker continues to believe Premier Investments’ shares are overvalued compared to peers. The Premier investments share price ended the week at $29.15.

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

More reading

• How to turn $20,000 into $300,000 in 10 years with ASX shares
• Why Computershare, Lake, Premier Investments, & Woodside shares are rising
• 3 more small-cap ASX shares with a competitive edge
• Brokers give their verdict on the Premier Investments (ASX:PMV) share price
• 5 things to watch on the ASX 200 on Friday

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 recommended Premier Investments 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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