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Through a sea of volatility, mining shares have managed to thrive while most other sectors struggled over the past 18 months.

But, believe it or not, there are some resource stocks in the S&P/ASX 200 Index (ASX: XJO) that are still great value and have potential for future gains.

Here are two that experts named as buys this week:

‘An appealing mix’ offered at a discount

Metals producer South32 Ltd (ASX: S32) has seen its share price drop more than 13.2% since 3 March.

According to Shaw and Partners senior investment advisor Jed Richards, now is the time to pounce.

“The recent share price retreat represents a buying opportunity, as South32 offers an appealing mix of raw material and base metal exposures,” Richards told The Bull.

He attributed the weakness in the share price over the past couple of months to its short-term outlook.

“The miner increased production by 12% in the first half of fiscal year 2023,” he said.

“However, the results were weaker than expected, and guidance has been downgraded at several operations.”

However, Richards believes this weakness will be offset by market forces.

“China re-opening its economy should boost commodity prices.”

According to CMC Markets, a stunning 13 out of 16 analysts currently rate South32 shares as a buy.

Production ramping up

Sayona Mining Ltd (ASX: SYA) has been a victim of the cooling lithium price in recent times, as its share price has fallen more than 21% over the past six months.

BW Equities equity salesperson Tom Bleakley is more than happy with its business progress, though.

“Sayona recently announced commercial spodumene concentrate production had resumed at the jointly owned North American Lithium project in Quebec,” he said.

“Sayona is targeting annual production of 226,000 metric tonnes a year, with first commercial shipments expected in the third quarter of fiscal year 2023.”

Bleakley’s peers agree. All three analysts who currently cover Sayona recommend the lithium stock as a buy, as surveyed on CMC Markets.

It’s not just the current production but potential for future expansion as well.

“Sayona is growing its resource base in Australia and Canada through an aggressive exploration campaign.”

The post ‘Buying opportunity’: 2 ASX 200 mining shares ripe to snap up now appeared first on The Motley Fool Australia.

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More reading

• Here’s why brokers say these ASX dividend stocks with big yields are buys
• Here are the 10 most shorted ASX shares
• The CEO has sold 4.5 million Sayona Mining shares in the past week. Is this a red flag?
• Top ASX passive income shares to buy in May 2023
• Why did the Sayona Mining share price sink 5% in April?

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. 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 National Australia Bank Ltd (ASX: NAB) dividend will soon be allocated to investors that are entitled to it. But, this is the last day for investors to buy NAB shares to get the dividend.

The ASX bank share recently announced its half-year result for the six months to 31 March 2023.

Upcoming NAB dividend

In that result, the bank announced that it was going to pay a fully franked, interim dividend of 83 cents per share.

The half-year dividend payment grew after the ASX bank share announced a 17% rise in cash earnings to $4.07 billion. NAB achieved higher profit thanks to stronger lending margins as there was an improvement in the net interest margin (NIM).

The NAB ex-dividend date is 10 May 2023. That means investors need to own shares before that date to be entitled to the interim dividend of 83 cents per share.

With today being 9 May 2023, this is the last day that people can buy NAB shares to get the payment.

The payment date is 5 July 2023, so shareholders would only have to wait two months before receiving the upcoming payment.

This dividend alone amounts to a grossed-up dividend yield of around 4.4%.

What next?

Commsec estimates currently suggest that NAB shares could pay a full-year dividend of 83 cents per share, which would mean it’s the same size as the half-year dividend.

If NAB were to pay that annual dividend, it would result in a grossed-up dividend yield of approximately 8.95%.

Talking about the current economic situation and outlook, NAB CEO Ross McEwan said:

Staying safe and maintaining prudent balance sheet settings has been a key strategic focus which positions us well for the risks and volatility stemming from recent rapid monetary policy tightening. Capital levels are above our targets, liquidity is strong, collective provision coverage remains well above pre COVID-19 levels and our FY23 term funding task is well advanced with $23 billion raised in 1H23.

The impact of higher living and interest costs on household spending and the broader economy is becoming more evident and we have a range of options available for customers needing support. Early signs that inflation is moderating are encouraging and we remain optimistic about the outlook – our bank and most customers enter this period from a position of strength and we are well placed to continue managing our business for the long term. We remain focused on the disciplined execution of our strategy to drive sustainable growth in earnings and shareholder returns over time.

NAB share price snapshot

Since the start of the year, NAB shares have dropped by over 9%.

The post Hoping to bag the boosted NAB dividend? You’d better hurry appeared first on The Motley Fool Australia.

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More reading

• Banking crisis continues: What’s up (and down) with ASX 200 bank shares today?
• Here’s how I’d aim for $200 a month in passive income using ASX 200 bank shares
• Is the NAB share price in the buy zone after crashing?
• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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. 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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If I told you that an airline was selling tickets at half-price, I’d bet you would seriously consider taking a holiday somewhere exotic.

Similarly, investors should be glad to pick up ASX shares at a heavy discount. 

But psychologically, it can take some courage to pull the trigger.

This week Morgans investment advisor Jabin Hallihan named a couple of buy suggestions that might give you that push you need:

A classic acquisition sets up this Aussie company

Imdex Limited (ASX: IMD) provides technology and equipment for the mining industry.

Its share price has unfortunately dipped more than 16% since 23 January.

Hallihan is bullish in the long run, citing the benefits of a recent business deal.

“This global mining technology company recently acquired a 40% interest in Krux Analytics Inc for $6 million,” Hallihan told The Bull.

“The deal enables Imdex to be part of cost-effective operations from exploration drilling to production.”

The technology that the acquisition brings in is attractive to Imdex’s resources sector clientele.

“Krux has developed cloud-connected sensors and drilling optimisation products to improve the process of identifying and extracting mineral resources,” said Hallihan.

“Accurate subsurface data can be obtained in real time. Imdex offers a bright outlook.”

Imdex shares have an almost universal endorsement from the wider professional investment community. 

According to CMC Markets, eight out of nine analysts currently rate the tech stock as a buy.

Debt buying can only ramp up from here

The Credit Corp Group Limited (ASX: CCP) share price has lost a painful 25% since early February.

The debt-buying industry remains quieter than expected, causing softness in investor sentiment.

But with 11 interest rate rises in the space of a year filtering their way through the economy, one can only imagine the number of Australians falling behind in their bills would increase from here.

Hallihan is buying Credit Corp shares on that premise.

“Any increase in bad and doubtful debts can be beneficial for this debt collection and services company,” he said.

“We’re forecasting earnings per share [EPS] to grow by 18.8% in the next 12 months.”

Morgans has a stock price target of $24.50, which implies a 39.7% upside from Monday’s closing price of $17.53.

The post ‘Bright outlook’: Buy these 2 ASX shares before they explode appeared first on The Motley Fool Australia.

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More reading

• ‘Opportunity to buy’: 2 ASX 200 shares Morgans is urging action on right now
• Keep the faith: 2 ASX shares to buy now at a temporary dip
• Here are the top 10 ASX 200 shares today
• What to know before giving up on growth and going all-in on ASX dividend shares

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. has positions in and has recommended Imdex. The Motley Fool Australia has positions in and has recommended Imdex. 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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There are certain ASX exchange-traded funds (ETFs) that can give us exposure to compelling growth trends. If revenue is growing for these businesses, then that will hopefully translate into rising profits and good shareholder returns.

Sometimes it’s hard to know exactly which particular business is going to benefit from growth in demand for a type of product or service. So, buying a whole group of companies at the same time through an ETF could make sense, also getting diversification at the same time. That’s why I like these two ASX ETFs:

VanEck Video Gaming and Esports ETF (ASX: ESPO)

The concept of this investment is that it’s invested in some of the world’s largest and leading businesses involved in the global video gaming and e-sports sector.

These are some of the largest holdings, which some readers may recognise: Nvidia, Tencent, Advanced Micro Devices, Nintendo, Activision Blizzard, Sea, Netease, Bandai Namco, Electronic Arts, and Take-Two Interactive Software. At the moment, it has 25 holdings.

VanEck says video gaming has achieved average annual revenue growth of 12% since 2015, while e-sports has seen annual average revenue growth of 28% since 2015.

E-sports is creating lots of new revenue streams, including game publisher fees, media rights, merchandise, ticket sales, and advertising. The competitive video gaming audience is expected to reach around 650 million people in 2023, according to Newzoo.

Over the five years to 30 April 2023, the index this ASX ETF tracks achieved an average return per annum of 15.7%. Although past performance is not a guarantee of future returns.

Betashares Global Cybersecurity ETF (ASX: HACK)

This ETF is invested in a range of cybersecurity businesses around the world.

We’re talking about names like Fortinet, Broadcom, Palo Alto Networks, Cisco Systems, Infosys, Verisign, Open Text, and Akamai Technologies.

Unfortunately, Australia presents a good example of the growth in cybercrime, and why cybersecurity is an important and growing industry. There have been a number of high profile cyber attacks in Australia in recent times, including major hacks on Medibank Private Limited (ASX: MPL), Optus and Latitude Group Holdings Ltd (ASX: LFS).

The Australian Cyber Security Centre (ACSC) said in its 2022 report that the number of cybercrime reports increased by around 13% year over year. There was also an average increase in the cost per cybercrime.

Certainly, individuals, businesses, and governments are increasingly moving online, making it more important that they have highly effective cybersecurity.

According to Statista, the global cybersecurity market could be worth $248 billion in 2023 and rise to $479 billion by 2030. That’s a strong tailwind for the businesses involved in this ASX ETF, if they do keep growing. I think this could enable the industry to keep seeing good share price growth.

Since its inception in August 2016, the ETF has achieved an average return per annum of around 14.3%. Although, once again, past performance is not a guarantee of future returns.

The post Why these 2 ASX ETFs could be great options to buy for growth appeared first on The Motley Fool Australia.

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• 3 fantastic ETFs for ASX investors to buy in May
• 3 top quality ETFs for ASX investors to buy and hold for 10 years
• 3 highly rated ETFs for ASX investors to buy in May
• 3 quality ASX ETFs for investors to buy for the long term
• Buy and hold these 3 ASX ETFs for a decade

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. has positions in and has recommended Activision Blizzard, Advanced Micro Devices, BetaShares Global Cybersecurity ETF, Cisco Systems, Fortinet, Nvidia, Palo Alto Networks, Take-Two Interactive Software, Tencent, and VeriSign. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom, Electronic Arts, NetEase, Nintendo, and Open Text. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended VanEck Vectors Video Gaming And eSports ETF, Activision Blizzard, and Nvidia. 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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If it’s passive income you’re after, you may wish to run your slide rule across New Hope Corp Ltd (ASX: NHC).

Fuelled by record high prices for thermal coal in 2022, the S&P/ASX 200 Index (ASX: XJO) coal share saw its half-year profits to 31 January more than double from the corresponding six-month period.

In a pleasing development for income investors, New Hope’s board divvied out some of the miner’s booming fortunes with shareholders. The past 12 months have seen the company declare an all-time high interim and an all-time high final dividend, both fully franked.

New Hope paid a 56 cents per share final dividend on 8 November. The miner will pay a 40 cents per share interim dividend this Wednesday, 3 May. The coal stock traded ex-dividend on 17 April.

Atop this welcome passive income, New Hope shares have also delivered some outsized capital gains.

After closing up 3.3% yesterday to $5.23 per share, the New Hope share price is up 44% over the past year.

Of course, some ASX 200 investors are making out better than others.

Please do note that future dividends paid by New Hope could be higher or lower depending on numerous company-specific and broader macroeconomic factors.

Drilling into New Hope shares for passive income

All up, New Hope delivered a total dividend payout of 96 cents per share over the last 12 months. (Or will have done so on Wednesday, when the final dividend lands in shareholders’ bank accounts.)

At yesterday’s closing price of $5.20 per share, that works out to a fully franked trailing yield of 18.4%.

That equates to $184 in annual passive income from a $1,000 investment.

That’s certainly praiseworthy.

But investors who – through sheer luck or perhaps good investment advice – bought shares near the lows last June will be earning a good bit more passive income than that.

On 20 June last year, the New Hope share price closed at $3.21. If you’d bought $1,000 worth of shares near market close on the day, you’d be earning a yield of 30.0%.

Or a whopping $300 a year in passive income from that $1,000 investment. Not to mention the 63% share price gain.

The post Looking for passive income? Here’s the yield you’re earning if you bought New Hope shares in June appeared first on The Motley Fool Australia.

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More reading

• Why Alumina, New Hope, Virgin Money, and Vulcan Energy shares are falling
• Directors are still buying the dip in New Hope shares. Should you?
• How I’d invest $1,000 in May to make easy passive income
• ASX 200 dividend stocks: Here’s a diamond in the rough yielding 18%!
• 12 ASX dividend shares with yields over 10%. Are they too good to be true?

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 ASX healthcare share sector can be a fruitful place to find companies that are both defensive but also can grow for a very long time.

I think the industry has a compelling future with Australia’s ageing demographic and the ongoing growth of the overall population.

With that underlying support for demand, I think the businesses that I’m going to write about have very promising futures through the 2020s.

Healthia Ltd (ASX: HLA)

Healthia is looking to become a large player in the allied healthcare space.

It has a few different divisions, including ‘bodies and minds’, ‘feet and ankles’ and ‘eyes and ears’. That includes services such as physiotherapy, hand therapy, occupational therapy and speech pathology; podiatry clinics and retail footwear stores; optometry and audiology stores, as well as eye frame distributor AED.

The company is looking to grow its organic revenue by between 3% to 6% per annum, which can drive its earnings higher. In the FY23 first half, organic revenue increased by 5.4%.

Healthia is also growing through acquisitions, which is increasing its market share and scale. In HY23, for example, it bought 10 physiotherapy clinics and two hand therapy clinics.

HY23 saw ‘underlying’ revenue grow by 34.3% to $125 million, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 48.2% to $18 million, and underlying net profit after tax (NPAT) went up 48.3%.

Ongoing revenue growth, combined with increasing profit margins, is very positive for the long term, in my opinion. The business has a market share of less than 3%, so there are plenty of future acquisition opportunities.

Commsec forecasts put the current Healthia share price at 9x FY23’s estimated earnings.

NIB Holdings Limited (ASX: NHF)

NIB is an increasingly diversified private health insurance business.

It’s best known for providing health insurance to Australian residents and visitors. But it’s also involved in other areas, including health insurance in New Zealand and travel insurance. Plus, there’s a division called NIB Thrive which is involved with NDIS plan management and support coordination.

The ASX healthcare share continues to see policyholder growth in Australia, which is helping drive revenue and earnings. People reportedly value health insurance more following the pandemic. NIB has outgrown the wider industry every year over the last 20 years, and it’s expecting to keep outperforming the industry, according to the company.

The company is looking to expand its “value proposition and differentiate NIB in existing private health insurance markets by making membership as much about supporting good health as it is the treatment of sickness and injury”.

The company plans to become a larger player with both its travel insurance and pursue NDIS opportunities. It has around 22,000 NDIS participants today, but it says it’s on track to manage plans for around 50,000 participants by FY25.

The ASX healthcare share is expecting stronger travel earnings thanks to increasing levels of availability of travel options.

Plus, international student volumes are strongly rebounding, while international workers are returning in numbers as well, according to NIB. This can help its international inbound health insurance earnings.

Commsec numbers put the current NIB share price at 20x FY23’s estimated earnings.

The post 2 ASX healthcare shares I’m backing for strong growth this decade appeared first on The Motley Fool Australia.

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More reading

• Perfect balance: 2 ASX 200 shares set to surge while paying dividends
• ‘Resilient earnings’: Buy 3 ASX 200 shares to win through troubled times

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. has positions in and has recommended Healthia. The Motley Fool Australia has recommended Healthia and NIB Holdings. 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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While inflation in Australia might have headed down in the March quarter, it is still flying uncomfortably high at 7%.

We’ve all witnessed first-hand over the past year that excessive inflation triggers interest rate rises, and therefore economic slowdowns and a depreciation in ASX share prices.

Many frightened punters have pulled out of the share market in recent times for that reason.

However, Fairmont Equities dealers’ assistant Lauren Hua reminds investors that holding cash is a far worse option during high inflation.

“Cash would not be the optimal asset class to hold in a high inflationary environment as inflation is rising faster than the interest that you earn on your cash,” Hua said on the Fairmont blog.

“Stocks would be a much better choice.”

She added that many companies would see their revenue and earnings grow at or above inflation.

“Some companies are able to pass rising costs to the consumer to maintain their profit margin.”

Things people just can’t live without

So which ASX shares are the best ones to have in the portfolio while inflation is raging like a bushfire?

Hua suggested four sectors that investors should take a look at.

First is healthcare.

“Defensive stock such as healthcare are considered safer investments as people will always need healthcare, even when consumer budgets are tight.”

High inflation prompts investors to pull their money out of higher risk industries to move into sectors they know will have resilient demand.

“Just like groceries in a supermarket, people will always need medicine and medical treatment,” said Hua.

“Consumers will place priority in spending on healthcare as opposed to less crucial goods and services.”

Along the same lines, ASX shares representing utility companies could also be a prudent shelter.

“Demand in utility companies will still be strong even in high inflation periods.”

According to Hua, utility providers have the awesome advantage of charging pretty much whatever they like.

“When operating costs rise for energy companies, they will pass these higher costs onto consumers and maintain their profit margin,” she said.

“Consumers will have no choice but to pay this inflated cost if they want to continue to receive utilities.”

‘People will still buy bread and milk’

Hua suggested that ASX shares in the consumer staples sector are not a bad batch to consider when the consumer price index is lofty.

Again, those companies are producing goods that Australians can’t live without.

“When there is high inflation, companies will pass these costs onto the consumers,” she said.

“People will still buy bread and milk, even if the costs increase. Companies in consumer staples know that even if they increase the price of a good, consumers will still need to buy it.”

The other side of the coin is that investors should avoid ASX businesses that produce discretionary goods.

“Consumers will stay away from non-essential goods and services such as a new TV or a new car. They will only spend what is necessary if their budget is stretched.”

Finally, Hua reckons the energy sector is ripe for picking during times like these.

That’s because there is a correlation between the oil price and inflation.

“Energy costs in households would be included in the consumer price index,” she said.

“As the oil prices increases, this directly affects the energy costs spent by consumers. This would lead to an increase in the CPI index and then inflation.”

The post The ASX shares to buy in high inflation times appeared first on The Motley Fool Australia.

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More reading

• What are brokers saying about the CSL share price in May?
• I’d invest $10,000 into these excellent ASX shares for the long-term
• The Westpac share price could offer a 20% return: Goldman Sachs
• 5 things to watch on the ASX 200 on Tuesday
• Citi rates these ASX dividend shares as buys

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. 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 CSL Limited (ASX: CSL) share price is having a decent year so far.

Since the start of 2023, the biotherapeutics giant’s shares have risen almost 5% to close at $301.27 on Monday.

This compares favourably to the ASX 200 index and its 3.4% gain.

The big question now, though, is can the CSL share price keep rising?

In order to answer this question, let’s take a look at what brokers are saying about the company’s shares.

Can the CSL share price keep rising?

Well, I have good news for you. All the major brokers believe the CSL share price has room to climb from current levels.

Here’s a summary in alphabetical order:

The team at Citi currently has a buy rating and $350 price target on the company’s shares. This implies potential upside of over 16% for investors over the next 12 months. Incidentally, this is the highest price target that I have seen.

Goldman Sachs is sitting on the fence at the moment with its neutral rating and $314.00 price target. This suggests the CSL share price could rise a little over 4% from here. Not great, but a gain is a gain.

Moving on, Macquarie is a fan and currently has an outperform rating and $344.00 price target on its shares. If it reached this level, it would mean a gain of just over 14%.

Analysts at Morgan Stanley are also positive on CSL. They currently have an overweight rating and $339.00 price target, which implies potential upside of 12.5% for investors.

Finally, Morgans is another broker that is bullish on the company. It currently has an add rating and $337.92 price target on its shares. This would mean a 12% gain if the CSL share price climbed to this level.

All in all, it seems that now is a good time to be a shareholder of this biotherapeutics leader if brokers are on the money with their recommendations.

The post What are brokers saying about the CSL share price in May? appeared first on The Motley Fool Australia.

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More reading

• Should I buy up CSL shares right now while they’re under $300?
• Morgans names the best ASX 200 stocks to buy in May
• Can the CSL share price crack a new, all-time high in 2023?
• These ASX 200 shares could be top options for your retirement portfolio: experts
• ‘Under the radar success’: 3 quality ASX 200 growth shares to buy right now

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 ASX share market is a great place to invest in businesses that can grow, in my opinion.

If someone handed me $100,000 to invest for the long term, I know that I’d want to put at least $10,000 of it into two options that could deliver strong growth well into the future.

We can’t know for certain which share prices are going to go up. But, companies that can grow revenue and/or profit at a solid rate have a good chance of achieving good performance or even outperformance.

I’d be happy to invest $10,000 in these two ASX shares because I believe they will outperform the S&P/ASX 200 Index (ASX: XJO).

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

This is a diversified exchange-traded fund (ETF) that enables investors to invest in a portfolio of businesses that are trying to do the right thing when it comes to environmental, social, and corporate governance (ESG) factors.

The 200 companies in the portfolio come from the global share market, have been identified as ‘climate leaders’ and exclude a number of ‘unethical’ sectors such as fossil fuels, tobacco, gambling, weapons and so on.

According to BetaShares, a dollar invested in this portfolio has 71.3% lower carbon emissions compared to the Solactive Global DM Index.

Some of the businesses involved that pass all of the screens include Nvidia, Visa, Apple, Mastercard, Home Depot and Toyota.

It comes with an annual management fee of just 0.59%, which is quite inexpensive considering all of the work done to create the portfolio.

Past performance is not a reliable indicator of future returns, but the ETHI ETF returned an average of 16.4% per annum over the five years to April 2023.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is an ASX healthcare share that makes software to help against breast cancer and lung cancer.

Its AI-powered image analysis enables radiologists “to quantify breast tissue with precision, and helps technologists produce mammograms with optimal image quality, positioning, compression and dose.”

The company helps healthcare professionals better identify risk. It’s currently focused on the United States, with a market share in the breast screening space of more than a third of US women.

Volpara recently became operating cash flow positive and continues to grow revenue quickly. In the fourth quarter of its FY23 (the three months to March 2023), cash receipts increased by 25% to NZ$10 million.

Annual recurring revenue (ARR) has now reached NZ$33.6 million. The ASX share comes with a gross profit margin of more than 90%, so any revenue growth is very beneficial for the company’s financials.

It’s seeing its cost base remain “steady”, which suggests that the profit margins could rapidly grow from here. The company is looking at future areas of growth, including “new forays in primary care.”

If the ASX share continues to be chosen by large healthcare providers such as Banner Health, that bodes well for future revenue growth and returns for shareholders.

The post I’d invest $10,000 into these excellent ASX shares for the long-term appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today  
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Which ASX 200 travel share has already taken off by 48% in 2023?
• 5 things to watch on the ASX 200 on Monday

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. has positions in and has recommended Apple, Home Depot, Mastercard, Nvidia, Visa, and Volpara Health Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool Australia has positions in and has recommended Volpara Health Technologies. The Motley Fool Australia has recommended Apple, Mastercard, and Nvidia. 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 was on form on Monday.

The banking giant’s share rose almost 2% to $21.74. This was driven by a positive reaction to the company’s half-year results release.

In case you missed it, Australia’s oldest bank reported a 22% increase in profit to $4 billion. This was driven by a combination of solid net interest income growth and lower expenses.

This allowed the Westpac board to declare a 70 cents per share fully franked interim dividend, which was up 15% year over year.

Is the Westpac share price good value?

The good news for investors is that analysts at Goldman Sachs believe that the Westpac share price remains great value. So much so, the broker has kept the bank on its coveted conviction list with a buy rating and trimmed price target of $24.67.

Based on where its shares are currently trading, this implies potential upside of 13.5% for investors over the next 12 months.

But it gets better. Goldman is forecasting a 6.4% dividend yield in FY 2023 (and FY 2024), which lifts the potential 12-month total return to approximately 20%.

What did the broker say?

In respect to its results, the broker was reasonably pleased with what it saw. It said:

WBC’s 1H23 cash earnings (GS basis ex-notables) from continued operations were up significantly hoh and +8% above GSe (+1% ex notables and businesses sold). The beat was driven by higher trading income and lower BDDs, partially offset by lower NIMs, and in line expenses, such that POP came in 3% higher than GSe (-1% ex notables and businesses sold). The 1H23 DPS of 70¢ (payout ratio 60%) was lower than GSe (72¢), and the DRP will be done with no discount. WBC’s 1H23 CET1 of 12.3% (globally harmonised 18.1%) was 26 bp better than GSe. WBC reiterated that it would operate within a CET1 range of 11.0-11.5% and amended its payout ratio range to 65-75% of reported NPAT, ex-notables.

Why is it so bullish?

Goldman Sachs has outlined three key reasons why it is bullish on the Westpac share price. They are as follows:

We remain Buy rated (on CL) on WBC given: i) we view WBC’s NIM management in the half as a positive relative to peers, in particular having achieved an exit NIM that was flat versus 2Q23 average in contrast with peers who saw continued deterioration, ii) despite WBC walking away from its FY24E cost target of A$8.6 bn, we expect a broadly flat cost trajectory over the next two years, which will see WBC outperform peers in this relatively difficult inflationary environment, and iii) the stock is trading on a c.11x 12-month forward PER (ex-dividend adjusted), which is a 23% discount to peers (versus 3% historic discount), and our revised TP of A$24.67 offers 25% [now 20%] TSR.

The post The Westpac share price could offer a 20% return: Goldman Sachs appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why Lynas, Piedmont Lithium, Westpac, and Woodside shares are rising
• Here’s what you need to know about the 70 cents Westpac dividend
• Westpac share price on watch amid $4bn half-year profit
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has positions in 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 recommended Westpac Banking Corporation. 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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