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The Rio Tinto Limited (ASX: RIO) share price has had a tough time this month.

After closing yesterday’s session at $95.71, shares in the mining giant have now tanked more than 13% in September.

Let’s take a closer look.

Why is Rio Tinto coming under so much pressure?

Several catalysts appear to be weighing down the Rio Tinto share price, including the plunging iron ore price.

The iron ore price dropped to $US90 a tonne yesterday, marking a 60% decline since its record high in May. With Chinese demand for the commodity dampening, the Rio Tinto share price has headed south as well.

According to Reuters, China released a report stating its steel output reached its lowest point since March 2020 last month.

This impacts Australia’s iron ore miners greatly as around 80% of the iron ore exported from Australia goes to China, according to the Minerals Council of Australia.

In addition, shares in Rio Tinto have also been spooked recently by fears that one of China’s biggest property developers could go under.

How did Rio Tinto perform in FY21?

Shares in Rio peaked immediately after the company released its half-year report for FY21.

For the 6 months ending 30 June, the mining giant reported a 71% increase in consolidated sales revenue of US$33.1 billion.

Thanks to surging iron ore prices, the miner recorded a 262 increase in free cash flow of US$10.2 billion.

As a result, Rio Tinto declared a fully franked interim dividend of $3.76 per share, plus a special dividend of US$1.85 per share.

Rio Tinto share price snapshot

Since reporting its half-year results, shares in Rio Tinto have come under pressure.

At one point in August, the Rio Tinto share price was flying more than 16.5% higher year to date.

However, shares in the mining giant recently broke below $100 for the first time since November 2020.

As a result, the Rio Tinto share price has given back much of its gains and now is trading more than 17% lower for the year.

The post September has been a terrible month so far for the Rio Tinto (ASX:RIO) share price appeared first on The Motley Fool Australia.

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• New Hope (ASX:NHC) share price jumps on $337m profit turnaround
• Rio Tinto (ASX:RIO) share price craters as iron ore hits US$100 a tonne

Motley Fool contributor Nikhil Gangaram 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 AMP Ltd (ASX: AMP) share price has fallen off a cliff since the start of September. This comes after the financial services company struggles with weak investor sentiment that has been going on since 2018.

At Tuesday’s closing bell, AMP shares continued their descent to 93 cents, down another 1.59%.

How did AMP perform in FY21?

AMP reported its half-year results on 12 August, highlighting a rebound in its financial metrics.

The company achieved a Net Profit After Tax (NPAT) of $181 million, up 57% on the prior corresponding period. This was largely driven by an increase in Australian wealth management assets under management (AUM) of $121 billion, up 8%.

However, in a positive light, Australian wealth management net cash outflows hit $2.7 billion. A massive improvement compared to the $4 billion in net cash outflows registered in H1 FY20.

Furthermore, controllable costs (excluding AMP Capital) came down 6% to $387 million. The positive outcome was underpinned by cost out benefits partly offset by structural cost increases, variable remuneration and reinvestment spend.

First-half total eligible capital resources stood at $452 million above target requirements, down from $521m at 31 December 2020.

The board decided to maintain a conservative approach to capital management and dividends until its demerger and future strategies are finalised. As such, AMP did not declare an interim dividend for the period.

What happened to the AMP share price?

In the weeks following AMP’s results, its shares have tracked downwards to hit a multi-decade low of 88.5 cents yesterday.

When looking at the last 12 months, the AMP share price has fallen more than 30%, with year-to-date also down around 40%. The company’s shares have lost about 80% of its wealth since early 2018.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained 24% from this time last year and is up 10% year-to-date. The ASX 200 also reached a record high of 7,632 points in mid-August.

Undoubtedly, AMP shares and the ASX 200 have moved in completely opposite directions.

AMP presides a market capitalisation of roughly $3.04 billion and has approximately 3.2 billion shares on its registry.

The post How has the AMP (ASX:AMP) share price been performing since reporting results? appeared first on The Motley Fool Australia.

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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 past week has not been kind to the Zip Co Ltd (ASX: Z1P) share price.

After closing yesterday’s session at $6.24, shares in the buy now, pay later company have tumbled more than 10% in the past week.

So, what’s been weighing down the Zip share price?

What’s been dragging Zip shares lower this past week?

Weakness in Zip’s share price in the past week can be traced back to the company’s Retail Investor Day.

Despite providing the market with promising product updates, the BNPL player failed to provide an update on its performance so far in FY22.

Zip has been plagued by speculation that its rebrand in the US has slowed momentum and growth.

As a result, concerned investors were left in the lurch as the company revealed a number of new products.

Various brokers and analysts have also expressed these concerns.

Macquarie recently released a bearish note that gave the Zip share price an underperform rating and a reduced price target of $5.70.

Analysts cited concerns over the company’s elevated bad debts, slowing customer growth, and softer web traffic.

As a result, short-sellers have looked to capitalise on Zip’s uncertain outlook.

According to the most recent data, Zip’s share registry has a 9.2% short interest.

Besides struggling this past week, the Zip share price has slid since releasing its full-year results.

How did Zip perform in FY21?

Zip noted FY21 as a transformational year, with the company recording a 150% increase in revenue of $403.2 million.

Other highlights from the company’s full-year report included:

• Transaction volumes of $5,8 billion, up 178.5%
• Transaction numbers of 41.3 million, up 293%
• Active customers at 7.3 million, up 247.5%
• Active merchants at 51,300, up 109.4%
• Cash gross profit of $198 million, up 147%

In addition to new merchants, the BNPL player also expanded to 12 new international markets in FY21.

Despite its strong growth results, Zip shares fell 2.6% on the day the company reported, as growth concerns emerged.

Snapshot of the Zip share price

Zip shares have not only struggled this week. Shares in the BNPL player have also underperformed the tech sector in the last year.

In the past 12 months, the  S&P/ASX All Technology Index (ASX: XTX) has risen around 33%.   

By comparison, the Zip share price is flat over the same timeframe.

The post The Zip (ASX:Z1P) share price is down 10% in a week. Here’s why appeared first on The Motley Fool Australia.

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• 3 exciting ASX tech shares to buy this month

Motley Fool contributor Nikhil Gangaram 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 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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The Qantas Airways Limited (ASX: QAN) share price closed up 2.23% yesterday, finishing the day at $5.50 per share.

The S&P/ASX 200 Index (ASX: XJO) made up some lost ground as well, closing up 0.35%.

It’s been almost 4 weeks ago now since the airline reported its full 2021 financial year (FY21) results.

Those 4 weeks have seen Australia’s COVID vaccination numbers surge. And Qantas now says it intends to relaunch international flights for the upcoming Christmas holidays, giving the Qantas share price a welcome tailwind.

With developments like this in mind, we take a look at how the airline has performed since reporting, along with a brief recap of those results.

What did the ASX 200 travel share report for FY21?

Investors were keeping a close eye on the Qantas share price on 26 August, when the company reported its FY21 results before market open.

Among the key metrics, Qantas’ full-year revenue of $5.9 billion took a reported $12 billion hit as the resurgent coronavirus saw international and many domestic Aussie borders remain closed.

Qantas reported a statutory loss before tax of $2.35 billion and underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $410 million. EBITDA was in line with the company’s guidance.

The airline did not pay a final or interim dividend during the financial year.

Commenting on the results and outlook, Qantas’ CEO Alan Joyce said:

Despite the uncertainty that’s still in front of us, we’re in a far better position to manage it than this time last year. We’re able to move quickly when borders open and close. We’re a leaner and more efficient organisation. And our requirement for all employees to be vaccinated will create a safer environment for our people and customers.

How has the Qantas share price performed since reporting?

Investors appear to have been prepared for the airline’s revenue plunge and multibillion-dollar statutory loss before tax.

The Qantas share price gained 3.5% on the day it reported. Since the opening bell on 26 August, the day of reporting, Qantas shares have gained 13%.

By comparison, the ASX 200 is down 4% over that same time.

The post How has the Qantas (ASX:QAN) share price performed since reporting 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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Despite a recent blip, National Australia Bank Ltd (ASX: NAB) shares have still smashed the market in 2021.

Since the start of the year, the banking giant’s shares have risen by 18%.

This is double the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Could now be the time to buy NAB shares?

Although NAB shares are outperforming in 2021, one leading broker believes this trend can continue.

According to a recent note out of Goldman Sachs, its analysts have a conviction buy rating and $30.62 price target on the bank’s shares.

So, with NAB shares currently changing hands for $27.10, this implies potential upside of 13% over the next 12 months before dividends.

In addition, Goldman is forecasting a fully franked $1.40 per share dividend in FY 2022. If you include this, the potential total return stretches to 18.1%.

What did Goldman say?

Goldman notes that NAB is its top pick among the major banks. This is due partly to its cost management and strong position in business banking. It also sees significant value in NAB shares at the current level.

The broker explained: “We reiterate our Buy (on CL) on NAB and it remains our preferred sector exposure given: i) NAB’s cost management initiatives, which seem further progressed relative to most of its peers, should drive productivity benefits sooner and free up investment spend to be directed more towards customer experience, as opposed to infrastructure (3Q21 update shows NAB is tracking well against this); ii) given NAB’s position as the largest business bank and investment in its mortgage capability, we believe it is strongly positioned to benefit from the current recovery in both housing and commercial volumes (3Q21 update showed continued volume momentum); iii) NAB continues to effectively manage the balance between volumes and margins as well as any peer; and iv) our TP offers c. 18% TSR potential.”

The post Could it be time to consider buying NAB (ASX:NAB) shares? appeared first on The Motley Fool Australia.

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• The NAB (ASX:NAB) share price has just had a lousy week, what’s next?
• Why this fund manager sees limited growth potential for ASX 200 banks
• The NAB (ASX:NAB) share price is underperforming its big four peers so far 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 CSL Ltd (ASX: CSL) share price edged higher yesterday after spending much of the day in the red.

The company clawed back those losses during the day to end Tuesday’s market session up 0.97% to $310.38. In comparison, the S&P/ASX 200 Index (ASX: XJO) also closed higher, up 0.35% to 7,273 points.

However, since mid-August, the global biotech’s share price has advanced further.

Below, we take a look at its most recent earnings result and how the CSL share price has performed since.

What did CSL report for FY21?

CSL delivered its full-year results for the 2021 financial year to investors before the market open on 27 August. The CSL share price closed the previous day at $297.94, a near 2-month high.

Across the board, the company reported a robust performance with growth in several key financial metrics. This included:

• Total revenue increased 9.6% in constant currency to US$10,026 million;
• Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 15% to $3,605 million;
• Net profit after tax lifted 10% to US$2,307 million; and
• Full year dividend of US$2.22 per share, up 10% year on year.

The group recorded a strong scorecard against a backdrop of very challenging conditions brought on by the global COVID-19 pandemic.

CSL Behring revenue rose by 6% thanks to robust demand for its immunoglobulin portfolio. This was led by its market-leading subcutaneous product, Hizentra. Sales rose 15%, driven by a preference for home administration and uptake for the treatment of Chronic Inflammatory Demyelinating Polyneuropathy (CIDP).

On the other hand, its influenza vaccines business, Seqirus, recorded an exceptionally sound performance with revenue up by 30% (constant currency). This was driven by record demand for seasonal influenza vaccines.

How has the CSL share price reacted?

On the day, CSL shares fell almost 1.5% after the announcement to finish at $293.56. The following week saw a sudden shift in positive optimism from investors, registering a gain of 6.5% to $312.51. This represented a year-to-date high for the company’s shares.

Since then, the CSL share price has moved sideways following broader market weakness from the ASX 200.

A number of brokers weighed in after the company released its full-year results.

Analysts at Citi upgraded its rating on CSL shares by 4.8% to $325.00 apiece. Morgans followed suit with a similar outlook, adding 7.7% to $324.40.

JPMorgan had a more bearish view, raising just 1.8% to a price target of $285.00. Based on the current share price, this implies a downside of around 8% on the broker’s assessment.

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

More reading

• 3 experts pick 3 ASX shares to rocket in next 12 months
• Why is the ASX All Ordinaries (ASX:XAO) struggling lately?
• The CSL (ASX:CSL) share price has had a good 6 months. Is it a buy?
• 2 high quality ASX 50 shares named as buys
• CSL (ASX:CSL) share price lifts amid ASX 200’s best day in 8 weeks

Motley Fool contributor Aaron Teboneras owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. 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 Westpac Banking Corp (ASX: WBC) share price will be one to watch on Wednesday.

This follows the release of an update on an asset divestment.

Why is the Westpac share price on watch?

Investors may want to keep an eye on the Westpac share price after it revealed that a planned asset sale will no longer go ahead.

According to the release, Westpac has terminated its agreements with Kina Securities Ltd (ASX: KSL) for the sale of its Pacific businesses. Kina was due to acquire Westpac Fiji and Westpac’s 89.91% stake in Westpac Bank PNG for up to $420 million.

This termination follows last week’s decision by Papua New Guinea’s Independent Consumer and Competition Commission (ICCC) to deny authorisation for the proposed sale of the Westpac Bank PNG to Kina Securities.

What now?

The banking giant notes that the Pacific businesses were classified as held for sale in its first half results. As a result, it is now expecting to reverse this with its full year results and is assessing whether any of the previously recognised impairments should also be reversed.

Though, how long the company holds onto these assets, only time will tell. Management advised that it plans to operate the businesses and support its Pacific customers while assessing alternate exit options. This is in line with its strategy to focus on banking in Australia and New Zealand.

What about Kina Securities?

The news is a big blow to Kina Securities’ plans and also its near term revenues.

The company advised that after taking into account the costs incurred in the transaction and the loss of the expected revenue, Kina Securities now expects that its FY 2021 results will only be in line with its FY 2020 results.

However, management remains positive on the future.

Commenting on the termination, Kina’s Managing Director and Chief Executive Officer, Greg Pawson, said: “Whilst we are disappointed that the Acquisition has not proceeded, this in no way changes the Company’s strategy of seeking both organic and inorganic growth in PNG and the Pacific Region, and the outlook for the Company remains positive.”

The post Westpac (ASX:WBC) share price on watch after asset sale terminated appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 defensive nature of the Wesfarmers Ltd (ASX: WES) share price has been paying dividends in the past week. It’s up around 2% over that time and has risen by 0.86% today to close at $57.39.

Many investors might consider this a win given the sharp pullback for the broader S&P/ASX 200 Index (ASX: XJO), which is down north of 2% over the same time period.

Looking back at reporting season, the Wesfarmers share price has tumbled 10% since the release of its FY21 results on 27 August.

Despite delivering solid growth in FY21, the company flagged that “earnings in the group’s retail businesses during the first half of the 2022 financial year may be below the prior corresponding period”.

It looks like the post-earnings selling has subsided, with the Wesfarmers share price bouncing off the $56 level.

In an article featured on Livewire, fund managers and analysts were asked which stocks they would pick if the markets were going to close for the next five years.

Portfolio managers at Airlie Funds Management, Emma Fisher and John Sevior, pointed to Wesfarmers.

What’s so good about the Wesfarmers share price in the long term?

In a world where the markets are closed for the next five years, Fisher pointed out that “you need to own a business that needs zero access to capital… You need a really high returning business that’s got a fantastic balance sheet, generates a lot of cash, but doesn’t need much cash”.

She said Wesfarmers ticks the boxes as a “very well-capitalised business and is a huge play on Bunnings (70% of earnings)”.

“The hardware business’ relative market share is 5 to 6 times higher than Mitre10, and well-capitalised competitors such as Woolworths have tried and failed to compete in the space,” she said.

“It is rare to find a retailer of that size that makes people excited about their business – not to mention a hardware retailer of all things.”

Sevior has also been impressed by the Wesfarmers business. He highlighted the “durability of the business, the quality of balance sheet, the quality of management, and the history of capital allocation”.

After all, the Wesfarmers share price has steadily climbed 81% in the last five years, excluding dividends.

The post Why these analysts are bullish about the Wesfarmers (ASX:WES) share price for the long term appeared first on The Motley Fool Australia.

More reading

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• How has the Wesfarmers (ASX:WES) share price been performing since reporting results?
• Why the Wesfarmers (ASX:WES) share price has been in focus this week
• Acquisitions for Wesfarmers and Domain, Telstra plans to grow and Myer back in profit. Scott Phillips on Nine’s Late News

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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The Orocobre Limited (ASX: ORE) share price has been on fire in 2021.

Since the start of the year, the lithium miner’s shares have risen a sizeable 91%.

This is a whopping 10 times greater than the 9% return generated by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Why is the Orocobre share price smashing the market?

Investors have been bidding the Orocobre share price higher this year thanks to bullish sentiment in the lithium sector. This is being underpinned by rising prices and the very favourable outlook for the battery making ingredient due to electric vehicle and renewable energy adoption.

In addition to this, Orocobre recently completed its merger with Galaxy Resources. This has created a top five lithium mining company, soon to be rebranded as Allkem, with strong operations and equally strong growth prospects.

Is it too late to invest?

The good news is that one leading broker still sees plenty of upside for the Orocobre share price.

According to a note out of Citi this week, its analysts have retained their buy rating and lifted their price target on the company’s shares to $10.50.

Based on the current Orocobre share price of $8.66, this implies potential upside of 21% over the next 12 months.

What did the broker say?

Citi is a fan of the Orocobre-Galaxy merger. It believes the merged company is well-placed to benefit from strong lithium prices.

The broker commented: “The ORE-Galaxy Resources Ltd (GXY) merger has formed one of the largest ASX-listed lithium pure-play companies and among the top five global lithium producers; we forecast pro-forma FY22 lithium carbonate equivalent sales of around 37kt. The company is diversified geographically and by production method, with hard rock and brine assets.”

“ORE’s joint venture with Toyota Tsusho Corporation (TTC, now a 6.2% ORE shareholder) has supported the development of its flagship asset (Olaroz, Argentina) and the company’s first investment in downstream battery grade lithium hydroxide production (Naraha, Japan). ORE is in a strong position to benefit from strong lithium demand as a result of the global decarbonisation movement,” it concluded.

The post Top broker tips Orocobre (ASX:ORE) share price to rise 21% appeared first on The Motley Fool Australia.

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

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Yes, the S&P/ASX 200 Index (ASX: XJO) is looking wobbly this month, having dropped 3.6% to Tuesday afternoon.

But whether a full-on correction does or doesn’t arrive, it pays to buy ASX shares in quality businesses that mostly have their fate in their own hands.

If the market drops, those stocks will be more resilient against price falls.

If the market rises, those shares will have more potential for growth than their rivals.

In a recent client-only webinar, 2 fund managers from Eley Griffiths Group (EGG) picked out 3 such ASX shares that excite them after the August reporting season.

Only just above the IPO price

EGG portfolio manager Nick Guidera likes the look of DDH1 Ltd (ASX: DDH), which listed on the ASX in March.

“Despite exceeding every major metric in its prospectus forecast at its maiden results, the stock is only just above IPO price at $1.10.”

Indeed, on Tuesday afternoon, DDH1 shares were trading at $1.23.

The company provides drilling services to the mining industry.

“It’s a high-quality contractor with sector-leading return on capital, one of the highest margins amongst the mining services sector, and one of the strongest balance sheets,” Guidera said.

“This stock has all things going for it at the moment — rig numbers improving, utilisation improving… We think there’s significant upside.”

Can you reject this ASX share?

Discount variety store Reject Shop Ltd (ASX: TRS) has burned more than a few investors the past few years.

As of Tuesday afternoon, the stock was trading at $6.30 which is more than 39% down over the past 5 years, as well as 14.5% lower over the past 12 months.

But Guidera reckons there’s only one way it can go from here.

“There’s a possibility the low may be in for that one.”

After its results announcement last month, brokers at Morgan Stanley agreed with Guidera.

They have rated Reject Shop as a ‘buy’ with a target of $10, which would be a tidy 59% gain from the current price.

Retail and hospitality will be roaring back after lockdown

With Australia’s 2 largest states hurtling towards 70% and 80% vaccination coverage, the end of lockdowns is looming.

And with that, Australians (or at least the vaccinated ones) are forecast to spend big on retail and hospitality.

EGG portfolio manager David Allingham reckons Tyro Payments Ltd (ASX: TYR) is poised to take full advantage.

“This business is, we think, absolutely at the forefront of the reopening trade that we’re going to see coming into Christmas across NSW and Victoria.”

Tyro provides card payment terminals to customer-facing businesses.

“Its 2 key payment verticals, physical, are retail and hospitality. It’s about 80% of its transaction value,” he said.

“This business has clearly been hampered by what has happened with the lockdowns. This is going to have an enormous reopening benefit.”

Tyro shares are up 19.5% for the year, trading at $4.05 on Tuesday afternoon.

“We’re bullish on Tyro. It’s trading at $4 today — we think it can trade comfortably with a $5 handle as we move into next year.”

The post 3 beaten-up ASX shares that are exciting us: experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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 Tyro Payments. 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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