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Xero Limited (ASX: XRO) shares have been outperforming for years. Part of the exclusive ‘WAAAX‘ group of Aussie tech companies, Xero has gone from strength to strength.

In fact, the ASX tech darling has climbed 60.5% higher in the past year and now boasts a market capitalisation of over $22 billion.

So, what would a $10,000 investment in Xero shares just 5 years ago look like today?

What would $10,000 in Xero shares 5 years ago be worth today?

On 16 September 2016, Xero shares were trading at $19.33 per share. That means a $10,000 lump sum would net an investor a tidy 517 shares.

The continued bull run in tech shares in the intervening shares means those 517 shares would be worth a tidy amount today. Shares in the Aussie tech group closed at $148.73 per share on Wednesday representing a 669.4% gain in the last 5 years.

That means those 517 shares would be worth a handy $76,893.41 in today’s dollars if that hypothetical investor was still holding today.

What’s driving the recent share price gains?

Xero shares currently trade at an astonishing price to earnings (P/E) ratio of 1,250 times. That reflects the incredible growth that investors are expecting from the Kiwi cloud accounting software group.

Interestingly, Xero has actually underperformed the S&P/ASX 200 Index (ASX: XJO) in 2021. Xero shares have edged just 0.2% higher this calendar year while the broad market index has added 11% to 7,417.0 points.

The high valuation multiples could have investors wondering what’s next for the company’s share price. However, at least one broker sees more upside in Xero shares.

A recent note from Goldman Sachs was slapped with a ‘buy’ rating and a $165 per share price target. Strong subscriber growth and monetisation of Xero’s user base were noted as a couple of factors supporting that outlook.

Foolish takeaway

Xero shares have struggled to climb higher in 2021 but are still up 669.4% in the last 5 years. That is some impressive growth for the WAAAX share and its investors.

The post What $10,000 invested in Xero (ASX:XRO) shares 5 years ago would be worth today appeared first on The Motley Fool Australia.

More reading

• 2 growing ASX shares that analysts rate as buys
• 2 ASX shares that won’t stay cheap: fund manager
• Is the Xero (ASX:XRO) share price heading to $165?
• ASX 200 tech shares are dragging the market on Monday
• Why Appen (ASX:APX) and this ASX growth share could be buys

Motley Fool contributor Ken Hall 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 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 Lynas Rare Earths Ltd (ASX: LYC) share price has been on fire this year. Shares in the Aussie rare earths producer are up 86.4% year-to-date after closing at $7.79 per share on Wednesday.

So, what’s driving this Aussie resources share higher in 2021?

Why the Lynas share price is up 86% in 2021

Let’s start with what Lynas actually does. The Aussie company is the second largest producer of rare earths globally and the only significant producer outside of China.

Lynas focuses on the entire rare earths life cycle from mining through to customer delivery.

The Lynas share price has been on fire this year bar a one-week period in August where the group’s value slumped 18% in a week. That came as part of a broader resources sector correction after Lynas was trading near a 52-week high.

Lynas’ full-year results drew a muted reaction from the market. The Lynas share price fell lower on August 27 despite the rare earths miner’s record profit announcement.

Lynas posted a 60% increase in revenue to $489 million with net profit after tax of $157.1 million. The group’s earnings before interest taxes, depreciation and amortisation (EBITDA) jumped 294% to $235.3 million.

The strong profitability and Lynas share price growth have largely gone hand in hand. Rare earths and lithium shares have performed well in 2021 driven by supply-side disruptions, soaring demand and subsequently soaring prices.

That’s been good news for shareholders who have watched Lynas shares continue to climb higher in recent months. In fact, recent gains mean the Lynas share price is now up more than 200% in the past 12 months with a market capitalisation in excess of $7 billion.

Foolish takeaway

Lynas shares are sitting at $7.79 per share as at Wednesday’s close, threatening the group’s $7.82 52-week high.

The post Why the Lynas (ASX:LYC) share price is up 86% in 2021 appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• ASX 200 energy and materials shares are leading the market on Monday
• Materials sector lagged the ASX 200 on Tuesday
• The Lynas Rare Earths (ASX:LYC) share price is soaring 4% on Tuesday
• The materials sector is leading ASX 200 shares today

Motley Fool contributor Ken Hall 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 QBE Insurance Group Ltd (ASX: QBE) share price has been out of form over the past month.

The insurance giant hasn’t released any market-sensitive news since announcing its fixed-rate resetting subordinated notes last week.

Wednesday’s market close added another 2.09% loss for the month, bringing QBE shares down a total of 6.84%.

Let’s take a look at what could be dragging the company’s shares lower.

What’s dragging QBE shares lower?

There are a couple of possible catalysts as to why the QBE share price has sagged in recent times.

Firstly, when QBE reported its half-year scorecard to the market, its shares accelerated to a 52-week high of $12.72.

The group highlighted a material turnaround in both underwriting and investment returns underpinned by strong profit growth. This led to an improvement in the company’s bottom line, recording a cash surplus.

Investors reacted positively to the news, sending QBE shares 8% higher on the day of the announcement. However, the share price boost was short-lived, as investors appear to be indulging in some profit-taking in the aftermath. The company’s shares are now trading at levels experienced before QBE published its bi-annual results.

Another reason which might be weighing on the QBE share price is a broker note from Goldman Sachs.

The multinational investment firm slapped a buy rating on QBE shares with a 12-month price target of $13.41. But some downside risks remain which could affect its shares for the second half of FY21.

These include the execution of efficiency programs being more difficult in the current market. The scope for recent rate increases may also reduce given COVID-19 economic headwinds.

Additionally, the broker pointed to an above-average catastrophe season expected in the Northern Hemisphere, and uncertain conditions in the Australian housing market.

QBE share price snapshot

While it has been a tough time this month, QBE shares are up around 26% since this time last year. In 2021, its shares have outpaced the S&P/ASX 200 Index (ASX: XJO) by 25% to register a gain of 37%.

Ranked as the 26th largest company on the ASX, QBE presides a market capitalisation of roughly $17.3 billion.

The post The QBE (ASX:QBE) share price has slumped 6% in 4 weeks. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Top broker says QBE (ASX:QBE) share price is a buy
• 10 ASX shares we’re overweight in right now: fund

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 Telstra Corporation Ltd (ASX: TLS) share price will be one to watch on Thursday.

This follows the release of its highly anticipated Strategy for the Future investor day update this morning.

What did Telstra announce?

With the very successful T22 strategy drawing to a close next year, the telco giant isn’t resting on its laurels.

This morning Telstra has unveiled the T25 strategy that it believes will take the company forward.

According to the release, commencing on 1 July 2022, T25 will be built on four strategic pillars. These are aiming to deliver an exceptional customer experience, leading network and technology solutions that deliver the future, sustained growth and value for shareholders, and the place you want to work.

Telstra’s CEO, Andrew Penn, highlighted that T22 was based on transforming the company, whereas T25 will be about driving growth.

He commented: “T22 has been one of the largest, fastest and most ambitious transformations of a telco globally and today we are a vastly different company. This means we are poised for growth as our society and economy increasingly digitises and we all work, study, transact and get our entertainment online. These fundamental shifts, together with T25, will underpin our future growth and shareholder value.”

“If T22 was a strategy of necessity, T25 is a strategy for growth,” said Mr Penn.

What is included in T25?

The company notes that T25 aims to provide a range of benefits.

This includes consumer and small business customers receiving exceptional customer experiences as telco, energy, and tech products and services are personalised and localised for individual customers using predictive analysis.

In addition, enterprise customers will have access to Australia’s largest one-stop-service shop, providing a range of managed and consulting services, telco products, and inhouse expertise of Telstra Purple to help customers digitally transform and grow.

The company isn’t forgetting about its regional customers. It intends to expand its regional coverage by 100,000 sq km of new 4G and 5G coverage, extending its network reach even further.

What about shareholders?

The good news for shareholders and the Telstra share price is that the company also has some bold growth targets.

Telstra revealed that it will aim for sustained growth and value by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY21 to FY25.

T25 also aims to deliver $500 million of net cost reductions, cash conversion and generation, active portfolio management, and shareholder value through an updated capital management framework.

This is expected to support its dividend payments and even allow for a long-awaited dividend increase in the future.

It commented: “Telstra’s updated capital management framework, effective from today, includes principles to maximise fully-franked dividends and seek to grow them over time, to invest for growth and to return excess cash to shareholders.”

From transformation to growth

Mr Penn concluded by reiterating that T25 marks its transition from transformation to growth.

He commented: “Through T22 we have set the foundation for our future success. We have simplified our operations and products, improved customer experience and reduced our cost base and our InfraCo plans are well progressed, helping us deliver value to shareholders. While T22 has been a success, we have more to do. We are determined to finish the job.”

“Today’s announcement of T25 marks our transition from transformation to growth, from a strategy we had to do, to a strategy we want to do to focus on growth. It is a strategy that builds on the strong foundations we have built over the last three years and remains focussed on what matters most – our customers, our people, our shareholders and on supporting the creation of a vibrant digital economy for Australia,” he added.

Is the Telstra share price in the buy zone?

According to a note out of Goldman Sachs this week, its analysts believe the Telstra share price is good value.

The broker has a buy rating and $4.40 price target on its shares. As a comparison, the Telstra share price is current fetching $3.93. This suggests there is almost 12% upside for the company’s shares.

The post Telstra (ASX:TLS) share price on watch after unveiling its T25 strategy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the 3 most heavily traded ASX 200 shares so far today
• Why this broker sees 11% upside in the Telstra (ASX:TLS) share price
• Leading brokers name 3 ASX shares to buy today
• What to watch at the Telstra (ASX:TLS) Strategy for the Future event this week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation 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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If you’re a fan of growth shares then you may want to look at the shares listed below.

These companies have been growing at a solid rate and have been tipped to continue doing so in the future.

Here’s why they are rated as buys:

Bapcor Ltd (ASX: BAP)

The first ASX growth share to look at is Bapcor. It is the Asia Pacific region’s leading provider of vehicle parts, accessories, equipment, service and solutions.

Bapcor was a very strong performer in FY 2021. Last month it released its full year results and reported a 20.4% increase in revenue to $1,761.7 million and a 46.5% jump in pro forma net profit after tax to $130.1 million.

Management advised that this was underpinned by increased demand from consumers, which drove solid growth across the business. In fact, each of Bapcor’s business segments delivered an increase in both revenue and earnings during the 12 months.

Looking ahead, management’s guidance for FY 2022 was a touch on the cautious side due to lockdowns. However, beyond this, the company’s outlook looks very positive thanks to its strong market position and bold growth plans.

It is for these reasons that the team at Credit Suisse remain positive on Bapcor. So much so, the broker has an outperform rating and $9.20 price target on the company’s shares.

Xero Limited (ASX: XRO)

Another ASX growth share to consider buying is Xero. It is a leading cloud-based business and accounting software provider with a focus on small to medium sized businesses.

Over the last few years, the Xero platform has evolved from a simple accounting solution into a full service small business solution. This has led to millions of small to medium sized businesses globally subscribing and running their businesses through its platform, which has underpinned strong revenue and profit growth.

For example, in FY 2021, Xero reported an 18% increase in revenue to NZ$848.8 million and a 39% jump in EBITDA to NZ$191.2 million.

Looking ahead, Xero still has a massive growth runway. This is being driven by the ongoing shift to cloud solutions, its international expansion, and its burgeoning app ecosystem.

Goldman Sachs is very positive on its future. In light of this, it recently retained its buy rating and $165.00 price target on the company’s shares.

The post 2 growing ASX shares that analysts rate as buys appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares that won’t stay cheap: fund manager
• Is the Xero (ASX:XRO) share price heading to $165?
• ASX 200 tech shares are dragging the market on Monday
• Why Appen (ASX:APX) and this ASX growth share could be buys
• 3 excellent ASX 200 (ASX:XJO) shares that could be buys

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 Xero. The Motley Fool Australia owns shares of and has recommended Bapcor 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 Australian housing market is in focus after a report that the number of ‘liar loans’ are increasing. Could this crash the housing market?

Australia’s housing generates a lot of economic activity across a broad range of industries, including on the ASX.

Some of the ASX’s biggest businesses, the major banks, are heavily involved with property. This refers to Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB). Mortgages make up a large amount of the loan book which can be seen in CBA’s FY21 result presentation (and the others).

Other ASX banks also have a very sizeable exposure to the housing market like Bank of Queensland Limited (ASX: BOQ), Suncorp Group Ltd (ASX: SUN), Bendigo and Adelaide Bank Ltd (ASX: BEN), Macquarie Group Ltd (ASX: MQG) and MyState Limited (ASX: MYS).

There are also property portal websites and mortgage brokers like REA Group Limited (ASX: REA), Domain Holdings Australia Ltd (ASX: DHG) and Australian Finance Group Ltd (ASX: AFG).

The housing market also provides fuel for plenty of businesses that supply building supplies or household items for customers. Some of the many examples include Wesfarmers Ltd (ASX: WES), Metcash Limited (ASX: MTS), Brickworks Limited (ASX: BKW), CSR Ltd (ASX: CSR), Nick Scali Limited (ASX: NCK), Harvey Norman Holdings Limited (ASX: HVN), JB Hi-Fi Limited (ASX: JBH) and so on.

So, the health, strength and sustainability of the housing market has far-reaching impacts.

What is happening with ‘liar loans’?

According to the latest survey done by the investment bank UBS, there is now a record number of liar loans, as reported by various media including the ABC.

Of the approximately 900 people that took on a mortgage over the last 12 months, just over 40% of these applications “were not completely factually accurate”.

Readers may wish to know that this is the highest level of ‘liar loans’ since UBS started doing this survey and analysing the result in 2015 (when liar loans made up 27% of the total). Last year the percentage was 38%.

Allegedly, the things that people were most ‘not entirely truthful’ about were: not disclosing their full living costs (just over a third), not fully disclosing financial commitments (at 28%) and including rosier-than-reality income figures (at 22%).

According to the ABC, UBS said that the debt-to-income ratio on mortgages was a record. The stats show that 21.5% of loans were to people that had a debt to income ratio of at least six times. UBS said:

Amid home prices booming 18.3 per cent year-on-year (highest since 1989), we think borrowers are ‘chasing the market’ and stretching towards their capacity limit to be able to qualify.

The status also showed that property investors were more likely to spruce up their application (above 50%) compared to people who were buying to live in the property (31%).

How is the housing market going?

Time will tell if this has an impact on borrowers have overstretched themselves or the market as a whole. It will also be interesting to see if the regulators decide to step in or not at some point. There is not much talk of Australian Prudential Regulation Authority (APRA) or the Reserve Bank of Australia (RBA) doing anything for now.

The latest CoreLogic national home value index showed that national prices climbed 1.5% over August 2021 and the prior 12 months showed a 18.4% increase of property prices.

The post Could liar loans crash the housing market? appeared first on The Motley Fool Australia.

More reading

• How has the NAB share price performed since reporting results
• How these 4 ASX 200 bank shares have performed since reporting results
• Why this broker sees the Westpac (ASX:WBC) share price hitting $30
• ASX 200 midday update: Pilbara Minerals jumps, bank shares fall
• CBA (ASX:CBA) share price slides amid upbeat $2b loan scheme

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 Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks, Macquarie Group Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Harvey Norman Holdings Ltd. and REA 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 Woolworths Group Ltd (ASX: WOW) share price closed up a slender 0.1% yesterday to finish the day at $39.35 per share.

Woolworths’ share price managed to shake off the broader selling trend, which saw the S&P/ASX 200 Index (ASX: XJO) close the day down 0.3%.

It’s been 3 weeks now since the supermarket giant reported its full year results for the 2021 financial year (FY21). With that in mind we take a look at how Woolworths shares have been tracking since releasing those results.

But first, a quick recap…

What results did the ASX 200 retail giant report for FY21?

Investors were keeping a keen eye on the Woolworths share price when the company announced its FY21 results before market open on 26 August.

Among the key results, Woolies reported a 5.7% year-on-year increase in group sales to $67.28 billion.

With COVID-19 seeing many people confined to their homes, or reluctant to venture into public spaces, the company’s eCommerce sales reached $5.60 billion, a massive 58.1% increase compared to FY20.

Woolworths chair Gordon Cairns commented on the surge in eCommerce, saying, “[O]ur investment in eCommerce over many years … has helped to drive sales of over $5.5 billion this year. Despite this increased investment, normalised Group ROFE [Return on Funds Employed] increased 1.4 points during the year to 15.1%.”

Woolworths’ earnings before interest and tax of $3.66 billion were up 13.7% year-on-year, while net profit after tax (NPAT) leapt 22.9% to $1.97 billion.

The strong results enabled Woolies to declare a final dividend of 55 cents per share, up from a final dividend of 49 cents per share in FY20.

On the same day, Woolies also reported its intention to conduct a $2 billion off-market share buyback.

How has the Woolworths share price moved since reporting those results?

On the day it reported, 26 August, the Woolworths share price gained 0.4%, closing at $40.99 per share.

Since market open on the reporting day, Woolies shares have lost 3.3%. By comparison, the ASX 200 is down 1.4% over that same period.

The post How has the Woolworths share price performed since reporting results? appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX:WOW) share price struggles amid bricks frustration
• Canva is now worth more than Woolworths! When can we buy shares?
• How does the Wesfarmers (ASX:WES) dividend compare to Woolworths?
• Why the Woolworths (ASX:WOW) share price has outperformed Wesfarmers so far this year
• 4 ASX shares just got a massive boost

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 Australian share market is home to a good number of shares offering attractive dividend yields.

But which ones should you buy over others? Here’s are two that analysts rate highly right now:

Coles Group Ltd (ASX: COL)

This supermarket giant could be a dividend share to consider buying. This is due to its favourable dividend policy and positive long term outlook.

That positive outlook is being underpinned by its strong market position, store expansions, cost cutting, and focus on automation.

Morgans is feeling bullish about Coles. In response to its full year results last month, the broker retained its add rating and lifted its price target to $19.80. This compares favourably to the latest Coles share price of $17.03.

In addition, the broker is forecasting dividends of 61 cents per share in FY 2022 and then 62 cents per share in FY 2023. This implies fully franked yields of 3.6% and 3.65%, respectively.

Mineral Resources Limited (ASX: MIN)

Another ASX dividend share to consider is Mineral Resources. If you don’t mind investing in the resources sector, then it could be a top option.

Particularly given its exposure to lithium, which is one of the hottest commodities around at present. In addition, Mineral Resources is still benefitting from favourable iron ore prices, albeit not as much as it was a few months ago.

The team at Macquarie are very positive on the company. Last week the broker retained its outperform rating and $77.00 price target.

Its analysts are also forecasting fully franked dividends per share of $2.57 in FY 2022 and then $2.29 in FY 2023. Based on the latest Mineral Resources share price of $52.42, this will mean yields of 4.9% and 4.4%, respectively, over the next two financial years.

The post 2 buy-rated ASX dividend shares with attractive yields appeared first on The Motley Fool Australia.

More reading

• How does the Wesfarmers (ASX:WES) dividend compare to Woolworths?
• Why this analyst sees 15% upside for the Coles (ASX:COL) share price
• The latest ASX 200 mining shares to get hit by broker downgrade
• Coles (ASX:COL) share price on watch amid latest push to Kmart market
• 4 ASX shares just got a massive boost

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

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In September 2021 so far, the Brickworks Limited (ASX: BKW) share price has gone up by 7%. But what could happen next for the construction materials business?

First let’s look at the last month or so of interesting updates.

Brickworks’ latest operational update

It has been a challenging operating environment for Brickworks in Australia over the last couple of months.

On 9 August 2021, Brickworks announced that it was curtailing operations at a number of New South Wales and Queensland facilities.

The company noted that brick dispatches abruptly reduced by 80% during the pause in construction activity across Sydney in late July.

Management said the partial re-commencement of construction activity in August has resulted in some improvement, however brick sales are/were at only 50% of pre-lockdown levels, resulting in multiple storage yards reaching full capacity. Therefore, Brickworks decided to curtail production at two of its five brick kilns across the state, representing 30% of total production capacity.

The building materials business also said that the impact is similar across its other building products businesses. Operations at its precast facility in Wetherill Park was significantly reduced and it has removed one production shift at its roof tile plant in Brisbane that supplies the Sydney market.

NSW is its largest and most profitable market, which is now having a “material” impact on its building products Australia earnings.

Its major capital projects were also being affected by restrictions, such as the new masonry plant at Oakdale East.

The Brickworks share price fell by 6% between the day of that announcement and 30 August 2021.

An acquisition

A week before that shutdown announcement, the company announced it was spending US$51.1 million to buy certain assets from Southfield Corporation, including the Illinois Brick Company (IBC). IBC is the largest independently owned and operated brick distributor in the US, with 17 showrooms and distribution outlooks across Illinois and Indiana.

Management said the acquisition supports the company’s growth strategy in North America. It will build scale and fills the gap within Glen-Gery’s existing direct distribution network. IBC will also underpin significant sales volume.

A positive update from Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Brickworks owns around 40% of Soul Patts, which recently gave an update about its expected profit. Due to the fact that Soul Patts is an investment house, its investment holdings’ performance has a major impact on its regular net profit each year. The performance of Soul Patts can have a very sizeable impact on the Brickworks share price.

Aside from referencing the expected record earnings from its property division, driven by the continued increase in the value in the trust, there were two other elements.

In New Hope Corporation Limited’s (ASX: NHC) latest quarterly report, it expects FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) to be $372 million. This was due to thermal coal prices currently being at a 10-year high.

Soul Patts also said that its 100%-owned mining business, Round Oak, is expecting to report a regular net profit to be in the range of $64 million to $68 million. This is a “significant” improvement on FY20’s regular net loss of $43 million as commodity prices rose and a number of mines went from development to production.

What next for the Brickworks share price?

In operational terms, Brickworks is looking forward to restrictions lifting in its major Australian markets. The ongoing development of the large industrial properties in its property trust for Amazon and Coles Group Ltd (ASX: COL) is expected to significantly increase the value and rental profit of the trust.

Investors can now look towards the release of the 2021 financial year result. This is due to be released on 23 September 2021.

One of the brokers most optimistic about Brickworks is Citi, which rates it as a buy with a price target of $27.20.

Using Citi’s profit expectations for the upcoming result, the Brickworks share price is valued at 15x FY21’s estimated earnings.

The post The Brickworks (ASX:BKW) share price has gained 7% in September. What’s next? appeared first on The Motley Fool Australia.

More reading

• Got money to invest for dividends? Here are 2 ASX shares that could be buys
• ASX 200 edges higher, Soul Patts (ASX:SOL) falls, Hansen (ASX:HSN) declines
• Here’s why the Brickworks (ASX:BKW) share price is lifting on Monday
• ‘Price makers’: 2 ASX shares to protect against inflation
• The Brickworks (ASX:BKW) share price is now trading on a forecast 2.5% fully franked dividend yield

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Wednesday the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.3% to 7,417 points.

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

ASX 200 expected to rebound

The Australian share market looks set to rebound on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.45% higher this morning. This follows a strong night of trade on Wall Street, which saw the Dow Jones rise 0.7%, the S&P 500 climb 0.85%, and the Nasdaq jump 0.8%.

Telstra Strategy Day

The Telstra Corporation Ltd (ASX: TLS) share price will be on watch today when it holds its highly anticipated Strategy for the Future Investor Day event. A note out of Goldman Sachs reveals that it expects this to be “a continuation of the current strategy (simplicity and customer focus, network leadership and improved efficiency) but with a tilt towards growth (such as Energy, Health, FWA, Enterprise 5G).”

Oil prices surge higher

It could be a very good day for energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) after oil prices surged higher. According to Bloomberg, the WTI crude oil price is up 3.1% to US$72.63 a barrel and the Brent crude oil price has risen 2.5% to US$75.46 a barrel. Oil prices climbed after US data revealed a greater than expected drawdown of supplies.

Gold price softens

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued day after the gold price dropped. According to CNBC, the spot gold price is down 0.7% to US$1,794.70 an ounce. US Federal Reserve tapering uncertainty is weighing on the safe haven asset.

Shares going ex-dividend

A number of shares are going ex-dividend on Thursday and could trade lower. This includes investment company Seven Group Holdings Ltd (ASX: SVW), casino operator SKYCITY Entertainment Group Limited (ASX: SKC), and New Zealand telco Spark New Zealand Ltd (ASX: SPK).

The post 5 things to watch on the ASX 200 on Thursday 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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation 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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