Tag: Motley Fool

Tesla Inc (NASDAQ: TSLA) shares reversed 4.9% to US$166.63 last night on underwhelming vehicle deliveries. The update could hint at a continued revenue growth decline in 2024. So, could it be time to ponder ASX shares for greater top-line expansion?

Business expansion is a key component in providing shareholder returns. Global consulting firm McKinsey describes it as a ‘fundamental driver of value creation’.

A company often fails to reward investors without more money flowing in through increased products/services sold or higher prices. Never mind the challenge of growing profits on a stagnant top line.

It might be possible through cost-cutting in the short run, but rarely can a company sustainably cut its way to growth.

You might be wondering what better options there are than Tesla; now knowing the importance of revenue growth. The ASX is aflush with shares parading revenue growth above that of the electric vehicle (EV) maker.

ASX shares beating Tesla on growth

Tesla’s revenue growth has backtracked from 71% in 2021 to 19% in 2023.

Revenue for the 12 months ended 31 December 2023 came in at US$96.77 billion, up 18.8% from a year earlier. To be clear, this isn’t a terrible rate of growth. For comparison, the aggregate revenue growth across the S&P 500 Index is 3%.

Nevertheless, here are three ASX shares pumping up their revenue at a higher rate than Tesla.

21% revenue growth: The third largest company on the ASX is growing faster than Tesla. That’s right, Aussie biotech giant CSL Ltd (ASX: CSL) is 87 years older than the sleek carmaker and still increasing its top line at a youthful pace.

CSL recorded revenue of US$14.18 billion in the 12 months ended 31 December 2023. In 2022, the company generated US$11.71 billion in revenue. However, it is worth noting that a portion of this growth came from the Vifor acquisition.

23% revenue growth: The next ASX share firing up its financial figures is accounting software company Xero Ltd (ASX: XRO). This New Zealand business differs from Tesla and CSL because of its lack of profits. Yet, its revenue growth is in terrific shape, increasing 23% compared to a year ago.

Revenue for the 12 months ended 30 September 2023 arrived at NZ$1.54 billion. A year earlier, the company’s total revenue tallied up to NZ$1.25 billion. In February, the Xero team shared their aspiration to double the size of the business.

29% revenue growth: Lastly, an ASX share that bests Tesla in revenue growth and profit margin. Founded 8 years before the automotive spectacle, WiseTech Global Ltd (ASX: WTC) is a logistics software company flexing impressive fundamentals.

WiseTech raked in $939 million in revenue for the 12 months ended 31 December 2023. A year earlier, this figure had arrived at $729.4 million.

Furthermore, the company outlined full-year FY24 revenue guidance of $1,040 million to $1,095 million, equating to an increase of between 27% and 34%. This is not a one-off either. WiseTech was generating $284.9 million in revenue a mere five years ago.

The post 3 ASX shares boasting better revenue growth than Tesla appeared first on The Motley Fool Australia.

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More reading

• Why Mesoblast, Regis Resources, Westgold, and WiseTech shares are sinking today
• Own CSL shares? You’re receiving a healthy dividend boost today!
• Got $5,000? 5 ASX shares to buy for lasting wealth
• 5 things to watch on the ASX 200 on Wednesday
• CSL share price lower despite US FDA boost

Motley Fool contributor Mitchell Lawler has positions in Tesla and has the following options: long June 2025 $510 calls on Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Tesla, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Last week, I looked at the top ASX 200 growth stocks that Macquarie Group Ltd (ASX: MQG) has in its growth portfolio. You can read about those shares here.

The investment bank also has an income version that it notes represents a starting point to form a portfolio with income characteristics.

The broker also highlights that this portfolio is created with a focus on a higher degree of earnings certainty, backed by strong cash flows, and highly tax effective dividend income.

Its top five ASX 200 income portfolio holdings right now are listed below:

Westpac Banking Corp (ASX: WBC)

Australia’s oldest bank is the biggest holding in Macquarie’s model income portfolio. This is despite the broker having an underperform rating on Westpac and all the big four banks. Westpac currently has a 9% portfolio weighting in the portfolio.

In terms of valuation, the broker has a $26.00 price target on its shares. As for income, it is forecasting a fully franked dividend yield of 5.5% in FY 2024.

Suncorp Group Ltd (ASX: SUN)

Next in line is insurance giant Suncorp which has an 8.9% weighting in the model portfolio. Macquarie has an outperform rating and $17.00 price target on its shares.

And for that all-important income, the broker expects Suncorp’s shares to provide investors with a fully franked 4.4% dividend yield in FY 2024.

Telstra Group Ltd (ASX: TLS)

This telco giant is the third largest holding in the broker’s model income portfolio with a weighting of 8.1%. Unlike with the banks, its analysts expect a generous dividend yield and major upside potential from this ASX 200 stock.

Macquarie currently has an outperform rating and $4.38 price target on its shares. This suggests that upside of 14% is possible for investors over the next 12 months.

In addition, with the broker forecasting a fully franked dividend yield of 4.8% in FY 2024, the total potential return stretches to approximately 19%.

National Australia Bank Ltd (ASX: NAB)

The next big four bank that is included in the model portfolio is NAB with a portfolio weighting of 7.6%. Though, as I mentioned above, Macquarie has it in its portfolio despite having an underperform rating and $32.50 price target on its shares.

As for income, the broker is forecasting a fully franked 4.8% dividend yield from the ASX 200 stock in FY 2024.

ANZ Group Holdings Ltd (ASX: ANZ)

Rounding out the top five is fellow big four bank ANZ with a weighting of 7.4%. Macquarie has an underperform rating and $27.00 price target on its shares.

In respect to dividends, the broker expects a partially franked dividend yield of 5.5% from its shares in FY 2024.

The post Here are the top five ASX 200 stocks in Macquarie’s model income portfolio appeared first on The Motley Fool Australia.

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More reading

• Invested $10,000 in ANZ shares during the 2020 dip? Here’s what you have now!
• After leaping to 52-week highs in March, what’s next for the Westpac share price?
• With a 7% dividend yield, are NAB shares a buy?
• 3 ASX shares I think will lead the next bull market charge
• 3 top ASX 200 dividend shares to buy now for $2,000 a month in passive income

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It has been a difficult session for the S&P/ASX 200 Index (ASX: XJO). In afternoon trade, the benchmark index has followed Wall Street’s lead and dropped deep into the red. At the time of writing, the benchmark index is down 1.3% to 7,785.3.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is down 9.5% to 86 cents. This is despite there being no news out of the biotechnology company. However, with its shares flying high in recent sessions, it seems quite likely that some profit taking is happening today. After all, Mesoblast’s shares remain up over 100% since this time last week despite today’s pullback. This strong gain was driven by the US Food and Drug Administration advising that there appears to be sufficient results to support the submission of the company’s proposed Biologics License Application (BLA) for its remestemcel-L medicine to treat paediatric patients with steroid-refractory acute graft versus host disease.

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price is down 3% to $1.95. Investors have been selling this gold miner’s shares after it released an update on the McPhillamys Gold Project in New South Wales. Regis Resources advised that substantial progress has been made towards completion of the Definitive Feasibility Study (DFS) for the project. However, as the DFS has progressed, it has now become apparent that its development costs will be higher than anticipated and previously communicated.

Westgold Resources Ltd (ASX: WGX)

The Westgold Resources share price is down 14% to $2.37. This has been driven by the release of the gold miner’s quarterly update this morning. During the quarter, Westgold produced 52,100 ounces of gold and achieved an average gold sale price of $3,137 per ounce. The former was softer than expected and has led to management downgrading its FY 2024 production guidance range to 220,000 to 230,000 ounces.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 5% to $89.89. This is despite there being no news out of the logistics solutions technology company. However, the tech sector is a sea of red on Wednesday following a poor night of trade on the Nasdaq index. Investors appear to have been spooked by the prospect of interest rates staying higher for longer. In afternoon trade, the S&P/ASX All Technology Index is down a disappointing 2.6%. This is twice the size of the market decline today.

The post Why Mesoblast, Regis Resources, Westgold, and WiseTech shares are sinking today appeared first on The Motley Fool Australia.

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More reading

• Mesoblast share price dumps 10% as excitement simmers on FDA submission
• Why Austal, Mesoblast, Novonix, and Paladin Energy shares are racing higher
• Blast off! Mesoblast share price surging 60%
• Top ASX shares to buy in April 2024
• Experts name 4 top ASX artificial intelligence shares

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 positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is well and truly out of form on Wednesday and on course to record a sizeable decline. In afternoon trade, the benchmark index is down 1.3% to 7,785.9 points.

Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are rising:

29Metals Ltd (ASX: 29M)

The 29Metals share price is up 7% to 45 cents. This is despite there being no news out of the copper miner today. However, it is worth noting that its shares were sold off last week following a disappointing update on the Capricorn Copper Operation. It has been forced to suspend operations indefinitely due to a steady accumulation of water in regulated structures on site. It seems that some investors believe that its shares were oversold last week.

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is up over 1% to $5.02. This morning, this uranium developer announced that it has successfully passed the final technical milestone in its Honeymoon re-start strategy. Next week, concentrated high-grade eluate will be recovered through an upgraded precipitation circuit to produce UO4, and then calcined to produce a high-quality saleable uranium oxide (U3O8) product. This paves the way for the first drum of uranium to be filled in the next two weeks.

Cooper Energy Ltd (ASX: COE)

The Cooper Energy share price is up 2.5% to 22 cents. This follows the release of a market update from the gas producer. That update revealed that the BMG wells decommissioning programme is now over 70% complete. Pleasingly, the programme remains in-line with the mid-case cost guidance of $240 million to $280 million. In addition, its Orbost Improvement Project initiatives continue to progress well, with increased average processing rates at the plant.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is up 8% to $1.96. Investors have been buying Ramelius Resources shares today after the gold miner released a production update. According to the release, the company achieved record gold production of 86,928 ounces during the March quarter. This was ahead of its guidance for production of 70,000 ounces to 77,500 ounces. Another positive was that the miner finished the period with cash and gold of $407.1 million. This reflects free cash flow generation of $125.3 million during the three months. Ramelius Resources shares are now up an impressive 65% over the last 12 months.

The post Why 29Metals, Boss Energy, Cooper Energy, and Ramelius shares are pushing higher appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 gold stock is rocketing 12% on record production
• How much would I have now if I’d invested $10,000 in Betashares Global Uranium ETF (URNM) a year ago?
• ASX 200 gold shares surging as gold price hits new records. Now what?
• How ASX shares vs. property performed in March
• These were the best-performing ASX 200 shares in March

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 Scott Phillips.

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The Commonwealth Bank of Australia (ASX: CBA) share price has been attracting a lot of attention of late. CBA shares command an outsized presence in the ASX arena at any given moment.

That’s largely thanks to its status as the largest ASX bank share, as well as being the second-largest share on the entire ASX.

This is also a company many investors have owned (and benefited from) for decades. So what this share does on a day-to-day basis typically attracts more attention than most.

But CBA has been in the news even more than usual lately. And it’s not hard to see why. This ASX bank has been downing new all-time record highs like bowling pins in recent months.

New record highs falling like flies

It’s hard to imagine today, but as recently as November, CBA shares were going for under $96. But in the months since, the bank has hit a series of new records. The most recent came just last month, which saw Commonwealth Bank climb to $121.54 a share.

Check it out for yourself below:

This is interesting because this latest record high followed on from a lukewarm reception of CBA’s latest earnings report generated in February.

As we covered at the time, these earnings revealed a 0.2% rise in operating income to $13.65 billion, whilst expenses rose 4% to $6.01 billion. The company’s net profits after tax fell by 3% to $5.02 billion.

Perhaps CBA’s 2.4% dividend hike to its interim payout, bringing it to a fully-franked $2.15 per share, resulted in a subsequent re-evaluation in the weeks since this earnings report came out.

Even today, with the CBA share price sitting at $118.04 at the time of writing, we’re not too far off the bank’s new record high.

But one ASX expert is warning investors to take advantage of this fact, and sell their CBA shares today.

ASX expert tells investors to sell CBA shares

As reported by The Bull, Damien Nguyen, analyst at ASX broker Morgans, has given the CBA share price a sell rating. Nguyen notes that CBA is a quality company.

But he told investors that the shares are simply too expensive to justify at their current levels, given their expected future returns. Here’s what he said in full:

Australia’s biggest bank enjoys a loyal retail investor and customer base. However, we believe potential medium term returns are too compressed at current prices considering its earnings outlook and elevated trading multiples. The shares were recently trading at a substantial premium to our 12-month price target of $91.28.

Nguyen’s view aligns with the vast majority of ASX experts that we’ve recently covered regarding CBA shares.

Last month, my Fool colleague went through the thoughts of Wilsons equity strategist Rob Crookston. Here’s what Crookston had to say:

While CBA has a lower ROE [return on equity] (13.3%) relative to JP Morgan Chase & Co (NYSE: JPM) (14.9%), it trades on a 58% premium on a price-to-book basis… While the historically resilient Australian economy and the concentrated nature of the domestic banking sector deserves a premium, this is excessive.

That followed a share price target of $95 for CBA from brokers at Macquarie, which we also went through last month.

So most ASX experts seem united in their view that CBA shares are overvalued right now. But many analysts have been voicing similar sentiments for years, yet here we are in early 2024 with a series of new all-time records for the CBA share price.

The post ASX expert: Sell CBA shares now appeared first on The Motley Fool Australia.

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More reading

• Why March was a record-smashing month for the CBA share price
• Own CBA shares? It’s payday for you!
• 5 things to watch on the ASX 200 on Thursday
• Are CBA shares really worth $120?
• $19 billion in ASX dividends is being paid out this week. Are you getting your share?

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Not many investors were buying Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares in the early months of 2020.

Following the outbreak of the global pandemic, fear ruled the markets. Most investors were rushing to hit the sell button on all kinds of quality ASX stocks, including ANZ.

From February 21 2020 through to 22 May of the same year, this saw the S&P/ASX 200 Index (ASX: XJO) bank stock crater by a shocking 44%.

Now it took a brave and forward-looking investor to recognize that after this massive sell-off, ANZ shares were a screaming bargain at $15.11 apiece.

If you’d taken the plunge and bought the dip on the day, your $10,000 would have bought 661 shares with enough pocket money left over for some chips.

Here’s how much those shares would have delivered now.

ANZ shares came roaring back

Alongside the broader market, ANZ staged a strong recovery following its May 2020 low point. That was driven by growing optimism over the outlook for COVID vaccines, along with massive government stimulus measures from developed nations across the world.

More recently, ANZ shares set new 52-week highs in March this year.

The rally across the bank stocks has been driven by increasing optimism over the outlook for interest rate cuts from the Reserve Bank of Australia in 2024. That could enable ANZ to boost its earnings if the bank chooses not to pass the full amount of any rate decreases on to its borrowers.

Although shares have retraced some from those highs, along with some of the rate cut hype, ANZ stock remains up more than 14% over the past six months at $28.98.

Meaning the 661 shares you bought for $10,000 at the pandemic dip would be worth $19,156.78 today.

But let’s not forget the dividends.

Over this period you would have received eight dividends from those ANZ shares, all fully franked barring the most recent final dividend payout. That one was franked at 56%.

All told, the ASX 200 bank stock paid out $5.23 a share in dividends since 22 May 2020. Or $3,457.03 from your 661 shares.

Assuming you spent that passive income as it came in instead of reinvesting it, we’ll just add those gains in as cash.

According to my trusty calculator, that means the $10,000 invested in ANZ shares during the pandemic dip would have returned $22,613.81 today.

Which brings two of my favourite Warren Buffett quotes to mind.

“Never overpay for anything,” he advises.

And famously, “Be greedy when others are fearful.”

The post Invested $10,000 in ANZ shares during the 2020 dip? Here’s what you have now! appeared first on The Motley Fool Australia.

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More reading

• The pros and cons of buying ANZ shares right now
• Buy ANZ and this ASX dividend share now
• Shares vs. property: How to generate $500 passive income per month
• These 5 high-quality companies are now paying a better income than CBA shares
• ANZ shares charge higher on $57.5 million class action settlement news

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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The Westpac Banking Corp (ASX: WBC) share price set a series of fresh 52-week highs in March.

However, shares in the S&P/ASX 200 Index (ASX: XJO) bank stock began to retrace mid-month, which saw the stock finish March slightly in the red.

Westpac closed out February trading for $26.35 a share. When the closing bell sounded on 28 March, shares were changing hands for $26.10 apiece, down 1.0%.

Here’s what happened over the month just past.

Westpac share price on the move

Westpac joined the other big four ASX 200 banks stocks to set new 52-week and even multi-year highs in March.

On 8 March, the Westpac share price closed at $27.70.

The rally in bank stocks was spurred by increasing optimism over pending interest rate cuts from the Reserve Bank of Australia and the US Federal Reserve.

On the domestic front, Westpac could enjoy an earnings boost if the bank opts not to pass on the RBA’s full cash rate cut to its customers. Of course, we still need to wait and see just when the central bank is confident enough about the inflation outlook to begin easing its policies.

As the month progressed, the Westpac share price came under some selling pressure.

The first headwind, which hit all the ASX 200 bank stocks, came on 14 March.

That’s when investors learned that Macquarie had downgraded Westpac along with National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ) to an ‘underperform’ rating.

The broker already had an ‘underperform’ rating on Commonwealth Bank of Australia (ASX: CBA) shares.

Commenting on the rationale for the downgrade, Macquarie analyst Victor German said, “Banks are trading at peak multiples without a clear fundamental reason.”

Macquarie has a $26 price target on Westpac shares, which is now 0.5% above the current price of $25.87 a share.

Now what?

Trading on a price-to-earnings (P/E) ratio of 13.4 times and a fully franked trailing dividend yield of 5.4% I think the 24% gain in the Westpac share price over the past six months is justifiable.

While I don’t expect shares to retrace significantly from current levels, it’s hard to see the ASX 200 bank stock delivering similar outsized gains over the next half-year.

Much of the performance is going to depend on the outlook for the Aussie and global economies.

If inflation continues to ease amid a so-called ‘soft landing’ for the economy, and central banks finally start to cut interest rates, the Westpac share price could well surprise to the upside.

The post After leaping to 52-week highs in March, what’s next for the Westpac share price? appeared first on The Motley Fool Australia.

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More reading

• I’d spend $8k on these ASX 200 shares today to target a $6,102 annual passive income
• Are Westpac shares a buy following the bank’s big tech update?
• 5 things to watch on the ASX 200 on Thursday
• Westpac shares push higher on $9.8b technology simplification plan
• Shares vs. property: How to generate $500 passive income per month

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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Liontown Resources Ltd (ASX: LTR) shares had a difficult time in March.

Over the month, the lithium developer’s shares lost approximately 10% of their value.

This means that the Liontown share price is now down over 55% on a 12-month basis.

Why did Liontown shares tumble last month?

Investors were selling the company’s shares in March after broad weakness in the lithium industry offset some very good news.

That news relates to the funding of the Kathleen Valley Lithium Project in Western Australia.

As we covered here at the time, Liontown has entered into a $550 million debt facility agreement, which will fund the company through to its first production and the ramp-up to its three million tonnes per year (Mtpa) lithium spodumene concentrate base case.

The funding of the project was a major risk that the company was facing. So, with it now funded through to production, things are looking a lot more upbeat for Liontown and its shareholders.

So much so, one leading broker believes that investors should be snapping up Liontown shares while they are down in the dumps.

Bullish broker

The team at Bell Potter was very pleased with the funding news last month.

In response to the update, the broker reaffirmed its speculative buy rating and lifted its price target materially to $1.90.

Based on where Liontown shares currently trade, this price target implies potential upside of 68% over the next 12 months.

To put that into context, a $20,000 would turn into almost $34,000 if Bell Potter is on the money with its recommendation.

What did it say?

Commenting on the debt funding package, the broker said:

We estimate the new facility provides funding headroom of around A$150m above KV’s remaining capex and working capital requirements. Notably, the debt conditions and covenants provide some confidence in KV’s status, requiring that the project can support the facility and a subsequent refinancing under independent technical assessments and price forecasts.

Outside this, Bell Potter continues to hold the Kathleen Valley Lithium Project in high regard. It concludes:

With the near-term funding overhang reduced, we have lifted our LTR valuation to $1.90/sh (previously $1.60/sh). LTR’s 100% owned KV lithium project remains highly strategic in terms of its stage of development, long mine life and location. LTR has offtake contracts with top tier EV and battery OEMs (Ford, LG Energy Solution and Tesla). Hancock Prospecting has a 19.9% interest in LTR. LTR is an asset development company; our Speculative risk rating recognises this higher level of risk.

The post Are Liontown shares dirt cheap and a screaming buy in April? 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 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 Scott Phillips.

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After yesterday’s explosive session, the Mesoblast Ltd (ASX: MSB) share price is retreating today.

As we tip past midday, shares in the clinical-stage drug developer are down 10% to 85.5 cents apiece. The move paints a vastly different scene from what was portrayed yesterday, with the Mesoblast share price blazing 71% higher as $58.4 million worth of shares changed hands.

Here’s a refresher if you’re wondering what’s behind this heightened volatility.

Another chance

Back in August last year, the Mesoblast share price suffered a crippling blow.

The US Food and Drug Administration (FDA) informed the company that it required more data to support marketing approval for remestemcel-L to treat pediatric steroid-refractory acute graft versus host disease (SR-aGVHD).

The consequence of this outcome on Mesoblast shares is patently clear on a 1-year price chart, as shown below. Shares quickly caved from $1.09 to 38 cents in a week, erasing almost $600 million of market capitalisation in the process.

The setback prompted Mesoblast to raise $97 million of capital at a time when it would be most dilutive (due to the reduced share price). To say the past eight months, or thereabouts, have been a harrowing time for Mesoblast investors would be putting it lightly.

However, last week produced a spark of hope. The FDA informed Mesoblast that its phase 3 study data now appeared adequate for submission of its Biologics License Application (BLA). In turn, management is confident in refiling its application for remestemcel-L in children with SR-aGVHD.

Mesoblast aims to submit its application to the FDA in the next quarter.

The turnaround corresponds with a 177% rise in the Mesoblast share price this year. With shares trading 10.5% lower today, there’s a possibility shareholders are taking some profits off the table.

Is the Mesoblast share price outperforming ASX 300 peers?

The S&P/ASX 300 Index (ASX: XKO) is the baseline for outperformance. As of today, the index is up 2.4% year-to-date, which means Mesoblast has beaten the benchmark by a staggering 174.6% in 2024.

But what about when compared to the top-performing ASX 300 shares?

Well, as it turns out, Mesoblast is also the top of that bunch. The next closest is Zip Co Ltd (ASX: ZIP), with its sizeable 107% gain this year.

The post Mesoblast share price dumps 10% as excitement simmers on FDA submission appeared first on The Motley Fool Australia.

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More reading

• Why Austal, Mesoblast, Novonix, and Paladin Energy shares are racing higher
• Blast off! Mesoblast share price surging 60%
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• 3 ASX All Ords shares up 50%+ in March

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Zip Co. 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 Scott Phillips.

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April is shining bright for ASX gold exchange-traded funds (ETFs).

As I pen this, three ASX gold ETFs are cracking into new all-time highs.

This comes as the yellow metal itself again launches into record territory.

There are some risks involved with any investment. However, investors opting to buy an ETF won’t need to buy and safely store physical bullion themselves.

Three ASX gold ETFs shining bright

The three gold ETFs in question all offer ASX investors exposure to the performance of gold by buying shares on the stock market.

Perth Mint Gold (ASX: PMGOLD) is up 0.9% today, trading for an all-time high of $35.00 a share.

According to Perth Mint’s website, “Gold offers investors protection against market volatility, inflation and geopolitical uncertainty.”

Annual management fees run at 0.15%. And PMGOLD has returned an impressive annualised 10.9% gain over the past five years, handily outpacing inflation.

The second ETF smashing all-time highs today is ETFS Metal Securities Australia Limited (ASX: GOLD).

The ETF is also up 0.9% today, hitting a record $32.39 a share.

Management fees are 0.4%, and it’s backed by physical gold. The company notes that, “Each physical bar is segregated, individually identified and allocated.”

GOLD has returned an annualised 12.7% over five years.

Also riding the soaring gold price to new highs is Betashares Gold Bullion ETF (ASX: QAU). Shares are up 1.3% at the time of writing at $19.09, having earlier peaked at $19.21.

Also backed by physical gold, the ASX ETF is hedged for currency movements in the AUD/USD exchange rate.

Management fees are 0.59%. And the ETF has returned an annualised 6.4% over five years.

What’s happening with the gold price?

The ASX gold ETFs and ASX gold miners are surging on the back of booming demand for gold.

The yellow metal is currently trading for US$2,283 per troy ounce, having touched US$2,287 per ounce in earlier trade today.

Either level tops Monday’s previous record high gold price of US$2,266 per ounce. And it sees bullion up more than 25% since the recent lows of US$1,820 per ounce on 5 October.

Gold has been supported on numerous fronts.

First, there’s the looming prospect of interest rate cuts from the United States Federal Reserve, the RBA and other leading global central banks. Gold, which pays no yield itself, generally performs better in low or falling interest rate environments.

Gold, and ASX gold ETFs, are also benefiting from ongoing strong central bank demand, which remains near record levels in 2024.

And bullion’s haven status has come to the fore amid ongoing geopolitical tensions in the Middle East and Eastern Europe.

The combined factors could see a significant further upside in the gold price.

Last month, JPMorgan Chase & Co forecast that bullion could trade for US$2,500 per ounce.

The post 3 ASX gold ETFs smashing all-time record highs today appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ords insiders selling over $1 million worth of their company shares
• Are your big ASX 200 mining dividends in for a chop?
• This hot ASX 300 stock is down 30% since February. Is it a buy?
• Why are Rio Tinto shares outperforming the market on Wednesday?
• How to turn $10,000 into $434,000 worth of superannuation with this ONE move

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase. 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 Scott Phillips.

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