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It’s been a stellar year for the Commonwealth Bank of Australia (ASX: CBA) share price, rallying 22.8% year-to-date and well above its 2008 highs.

But CBA’s valuation has come into question, and Leithner & Company managing director Chris Leithner thinks the leading bank “no longer deserves its premium”.

In an article featured on Livewire, Leithner quantifies the Big Four banks’ returns over key intervals and breaks down why the glory days for the CBA share price might soon be over.

A history of outperformance

Leithner highlights key intervals over the past three decades and for the most part, it’s been the CBA share price running ahead of the others.

1. Before the Global Financial Crisis (GFC), CBA “outperformed” the other banks and the index
2. During the GFC, it fell less than the other banks (except WBC) and the AOAI
3. After the GFC and before the Global Viral Crisis (GVC), it outpaced the others
4. During the GVC, it fell less than the others.

However, in recent times, Leithner flags that the CBA share price hasn’t outperformed since March last year.

ANZ’s shares have risen more than CBA’s; and CBA’s rise is little more than NAB’s and WBC’s.

This, I suspect, might be a preliminary and surface indication of a deeper and long-lasting change: if the 30 years to 2020 suited a relatively aggressive bank like CBA, might the times now favour – at least in relative terms – a more conservative one like NAB?

CBA share price drivers

Leithner believes CBA’s aggressive lending has been a key driver of its outperformance.

“CBA has lent particularly aggressively; that is, its liquidity and reserve ratios have consistently lagged the others.

“For this and other reasons, its ROE has exceeded the others – and market participants have valued its equity relatively highly,” said Leithner.

Looking ahead

The CBA share price might be at its crossroads as economic growth begins to slow.

Leithner concludes that the Big Four banks “are now low-growth and remain heavily exposed to housing, funding markets and unemployment … Their profits and dividends are a result of significant leverage; they are not annuities comparable to term deposits.

“In this environment, CBA no longer deserves its premium and will therefore lose it; the price of its equity, in other words, will either fall towards the others or the others will rise towards CBA’s, or some combination of the two.”

The post CBA (ASX:CBA) share price too expensive, says expert appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) share price lifts despite latest superannuation woes
• How have ASX bank shares performed during the August 2021 earnings season?
• The CBA share price has struggled in the last month. Here’s why
• The Macquarie (ASX:MQG) share price is outperforming the ASX big 4 in the past month
• ASX 200 bank shares fall as AUSTRAC says risk of criminal activity is ‘high’

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 Doctor Care Anywhere Group PLC (ASX: DOC) share price has been a strong performer on Thursday.

In morning trade, the telehealth company’s shares are up 10% to 85 cents.

Why is the Doctor Care Anywhere share price racing higher?

Investors have been bidding the Doctor Care Anywhere share price higher today after it announced a key new acquisition.

According to the release, the company has acquired Australian based telehealth provider GP2U Telehealth.

GP2U Telehealth provides virtual GP services under the brand GP2U and tele-mental health services under the brand Psych2U. The latter is the key contributor of revenue, currently generating 78% of GP2U Telehealth’s total revenue of $4.4 million.

The release notes that the $11 million acquisition represents Doctor Care Anywhere’s first entry into the Australian telehealth market.

Why acquire GP2U Telehealth?

Doctor Care Anywhere appears to see the acquisition of GP2U Telehealth as a great way to gain exposure to the increased spending on mental health by the government.

It highlights that in response to the mental health consequences of the COVID-19 pandemic, the Australian government has increased spending on mental health to $6.3 billion for 2021-22. This includes a significant expansion of telehealth services to respond to high levels of mental distress in communities across the country.

Management believes GP2U Telehealth is well placed to meet this demand through its mental health service provision.

Doctor Care Anywhere’s CEO, Dr Bayju Thakar, said: “This acquisition represents another important milestone for Doctor Care Anywhere; giving us a platform on which to build our presence in the Australian market and further expand our international business. It will give GP2U the support it needs to make a real difference in helping patients, particularly those in rural and remote regions, access high quality virtual GP care and, in particular, support existing GP practices in the provision of tele-mental health.”

“Both service lines are ideally suited to the innovative and responsive applications provided by a telehealth approach, especially where the geographical distance between clinician and patient is prohibitive. Building on our significant organic growth, we believe that this is the right time to be expanding our telehealth activity internationally to serve and care for more patients through the strategic acquisition of GP2U Telehealth and we are very excited to be entering the Australian market,” he concluded.

The Doctor Care Anywhere share price is down 31% in 2021.

The post Why the Doctor Care Anywhere (ASX:DOC) share price is jumping 10% today appeared first on The Motley Fool Australia.

More reading

• These recent ASX IPOs have just reported for the first time. How did they go?

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 Doctor Care Anywhere Group PLC. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC. 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 Wesfarmers Ltd (ASX: WES) share price has been on fire in 2021.

Shares in the conglomerate have been in hot demand with a spate of COVID-19 lockdowns fuelling consumer demand.

Wesfarmers operates household banners such as Bunnings, K-Mart, Officeworks and Target.

However, not many investors know that the conglomerate also has significant exposure to the lithium sector.

Let’s take a look at Wesfarmers’ involvement in the lithium sector.

Wesfarmers enters lithium sector

The lithium sector has received extra attention recently as spot prices soar.

One of the many companies that could benefit from higher lithium prices could be Wesfarmers.

Earlier this year, the conglomerate divested its coal business and expanded into the burgeoning lithium sector.

This move culminated in Wesfarmers constructing a lithium mine in the Western Australian region of Mt Holland.

The conglomerate also has a joint venture company, Covalent Lithium, with Chilean lithium giant Sociedad Química y Minera de Chile (SQM).

Following a feasibility study, the Mt Holland project has an approximate annual production capacity of 50,000 tonnes of battery-grade lithium.

Most recently, Wesfarmers received ministerial approval for the construction and operation of the lithium hydroxide refinery as part of its Mt Holland lithium project.

As a result, the conglomerate is in a unique position to supply battery-grade lithium to sate global demand.

Snapshot of the Wesfarmers share price

Up until recently, the Wesfarmers share price was having a stellar year thus far.

However, in the past 3 weeks, shares in the conglomerate have fallen more than 14% from their record highs.

The sell-off coincides with the release of the company’s full-year report for FY21.

For the full-year, Wesfarmers recorded a 10% increase in revenue and an 18.8% jump in EBIT from continuing operations.

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

• EBIT (after interest on lease liabilities) up 20.7% to $3,550 million
• Net profit after tax rose 16.2% to $2,421 million
• Operating cash flows down 25.6% to $3,383 million
• Fully franked full year dividend of 178 cents per share, up 17.1% year on year
• Proposed $2.3 billion or $2.00 per share capital return to shareholders

Despite falling in the past month, the Wesfarmers share price remains more than 12% higher for the year.

Shares in the conglomerate closed yesterday’s session at $28.85.

The post Own Wesfarmers (ASX:WES) shares? Then you’re invested in lithium appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX:WOW) share price on watch after its big green promise
• How does the Wesfarmers (ASX:WES) dividend compare to its sector?
• Broker gives its verdict on the Wesfarmers (ASX:WES) share price
• Wesfarmers (ASX:WES) share price in focus as Bunnings and Officeworks reopen Sydney stores
• Top brokers name 3 ASX shares to sell next week

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

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The Santos Ltd (ASX: STO) share price has been treading lower in recent times.

When the company reported its half-year result on 17 August, its shares fell to a new year-to-date low of $5.84. This erased all the gains made over the past 8 months, with Santos shares now down around 5% in 2021.

Yesterday, the Santos share price ended the day at $6.19. It has again fallen in early trade today, down 1.53% to $6.09. In comparison against pre-pandemic levels, Santos shares are down more than 30% from the $9 mark achieved during January 2020.

What’s in store for Santos in the second half of FY21?

Santos provided some context for its full-year outlook for the 2021 financial year.

The company is maintaining its sales volume guidance of between 100 mmboe (million barrels of oil equivalent) to 105 mmboe.

Production guidance on the other hand is forecast to be in the range of 87 mmboe to 91 mmboe. The lower second-half production volumes are due to the 25% sell-down in Bayu-Undan and DLNG which was completed in April.

Furthermore, the Santos and Oil Search Ltd (ASX: OSH) merger process is currently underway. Due diligence is being conducted with a binding merger implementation deed targeted for 13 September. Shareholders are due to vote on the proposal in November.

Where next for the Santos share price?

While it seems like a busy second half for the company, a couple of brokers weighed in on the Santos share price.

Analysts at JPMorgan cut its price target by 1.2% to $8.05 for Santos shares. Leading Australian investment house Morgans followed suit, reducing its rating by 0.6% to $8.55 per share.

In addition, Goldman Sachs released a report stating that Santos’ half-year result was in line with market expectations.

The multinational broker noted: “Potential for further capital recycling through farm-ins/sell downs as Santos executes on its growth pipeline could be incrementally positive. Santos is leveraged to continued upside risk in oil prices.”

Despite the update, Goldman Sachs remained unrated on Santos shares.

Quick summary on Santos shares

Over the past 12 months, the Santos share price has gained just over 20%, which is in line with the S&P/ASX 200 Index (ASX: XJO), up 25%.

Santos commands a market capitalisation of roughly $12.8 billion, with approximately 2 billion shares on its registry.

The post What is the future for the Santos (ASX:STO) share price? appeared first on The Motley Fool Australia.

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• Santos (ASX:STO) share price slides despite latest clean energy spruik
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 energy shares fell today – here’s why
• Why the Santos (ASX:STO) share price is edging lower today
• 5 things to watch on the ASX 200 on Monday

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 Insurance Australia Group Ltd (ASX: IAG) share price has moved in circles over the past year. This comes as the insurance giant has faced challenging trading conditions caused by the COVID-19 pandemic.

At yesterday’s market close, IAG shares finished the day down 0.55% to $5.39 apiece.

What’s going on with IAG shares?

There are a couple of possible catalysts as to why the IAG share price has failed to produce decent gains over the last 12 months.

In mid-August, the company released its full-year results, revealing mostly a good performance.

Gross written premium (GWP) lifted 3.8% over the prior corresponding period to $12,135 million. This predominately was rate-driven along with customer growth across Australia and New Zealand.

Insurance profit jumped 35.9% to a total of $1,007 million due to further net reserve strengthening and a positive credit spread impact.

Cash earnings also increased 170% to $747 million, excluding unusual items.

However, IAG’s bottom line came to a reported net loss after tax of $427 million. This was blamed on significant one-off corporate expenses mainly relating to business interruption, customer refunds, and payroll remediation.

In addition, IAG recently announced that CMC Hospitality has filed an application starting a representative proceeding in the Federal Court.

The company has not been served with the application and isn’t aware of the detailed nature of the application. Although, it appears to relate to insureds who hold policies with CGU and business interruption losses related to COVID-19.

How does the IAG share price compare to the ASX 200?

Over the last 12 months, the IAG share price has gained 10%, with year-to-date up around 14%. The company’s shares have lost almost 40% of its wealth since July 2019, particularly when COVID-19 hit.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained 25% from this time last year and is up 14% year-to-date. The ASX 200 also reached a record high of 7,632 points in mid-August.

Based on today’s price, IAG presides a market capitalisation of roughly $13.2 billion, with approximately 2.4 billion shares on issue.

The post Why the IAG (ASX:IAG) share price has underperformed the ASX 200 in the last year appeared first on The Motley Fool Australia.

More reading

• How have ASX financial shares performed during the August 2021 earnings season?
• Here’s why the IAG (ASX:IAG) share price is slumping today
• Here’s why the IAG (ASX:IAG) share price is up 10% in a month
• Here’s why the IAG (ASX:IAG) share price is down 3% in a week
• Here’s why the IAG (ASX:IAG) share price is up 6% in the last 3 months

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 owns shares of and has recommended Insurance Australia 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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BHP Group Ltd (ASX: BHP) shares were one of the most popular traded stocks amongst Saxo Capital Markets’ Australian clients in August 2021.

Shares in the iron ore major came in at number three, trailing behind Amazon.com, Inc. (NASDAQ: AMZN) and Fortescue Metals Group Limited (ASX: FMG).

What did Saxo say about BHP shares?

August proved to be a challenging month for the BHP share price and broader resources sector.

Besides the company’s FY21 full-year results, BHP made a number of headlines including plans to cease its dual listing on the London Stock Exchange and confirming its merger with Woodside Petroleum Limited (ASX: WPL).

Saxo commented that:

Client attention shifted to BHP Group in mid-August when the global mining giant announced plans to cease its dual listing on the London Stock Exchange and move its entire shares onto the ASX, where 50% of its stock has long been traded.

Looking over at BHP’s FY21 results, Saxo analysts said:

Like FMG, BHP Group posted a 42% rise in profits for the year to the end of June 2021. Much of which was derived by record-breaking profit margins of 64% from its Pilbara-based mines. There was further positivity on the BHP Group share price when it revealed plans to amalgamate its gas and oil assets within Woodside Petroleum, making Woodside one of the ten leading producers of oil and gas in the world. BHP shareholders will also receive shares in the reformed Woodside Petroleum stock.

Popular, but for the wrong reasons

BHP shares tumbled 14.7% in August, largely triggered by a sudden collapse in iron ore prices.

Approximately 196 million BHP shares traded hands in August, with just over a quarter of its monthly volume taking place the days after its FY21 results announcement.

On 18 August, the BHP share price tumbled 7.07% to $47.70 as investors digested its financial performance and outlook for iron ore. The sharp selloff was met with a significant uptick in volume, with ~25.99 million shares trading hands compared to its 20-day moving average volume of just ~6.09 million.

BHP continued to crater the next day, sliding another 6.35% to $44.67. Volume continued to climb with ~26.38 million shares trading hands compared to a 20-day moving average of ~7.17 million.

Foolish Takeaway

BHP’s volume profile is suggestive that investors might have taken reporting season and the recent weakness in iron ore as an opportunity to sell.

August proved to be a very challenging month for BHP shares, as its year-to-date return shrunk from 26.5% at the beginning to a mere 7.5% by the end.

The post Why BHP (ASX:BHP) shares have been getting these investors excited appeared first on The Motley Fool Australia.

More reading

• Leading broker reveals why these 10 big-name shares have been firing up its clients
• The BHP (ASX:BHP) share price is flat in 2021. But how much has the company contributed to the Australian economy?
• Materials sector lagged the ASX 200 on Tuesday
• Why the Rio Tinto (ASX:RIO) share price is in the red on Tuesday
• Why the BHP (ASX:BHP) share price is slumping 1% today

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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 Insurance Australia Group Ltd (ASX: IAG) share price has moved in circles over the past year. This comes as the insurance giant has faced challenging trading conditions caused by the COVID-19 pandemic.

At yesterday’s market close, IAG shares finished the day down 0.55% to $5.39 apiece.

What’s going on with IAG shares?

There are a couple of possible catalysts as to why the IAG share price has failed to produce decent gains over the last 12 months.

In mid-August, the company released its full-year results, revealing mostly a good performance.

Gross written premium (GWP) lifted 3.8% over the prior corresponding period to $12,135 million. This predominately was rate-driven along with customer growth across Australia and New Zealand.

Insurance profit jumped 35.9% to a total of $1,007 million due to further net reserve strengthening and a positive credit spread impact.

Cash earnings also increased 170% to $747 million, excluding unusual items.

However, IAG’s bottom line came to a reported net loss after tax of $427 million. This was blamed on significant one-off corporate expenses mainly relating to business interruption, customer refunds, and payroll remediation.

In addition, IAG recently announced that CMC Hospitality has filed an application starting a representative proceeding in the Federal Court.

The company has not been served with the application and isn’t aware of the detailed nature of the application. Although, it appears to relate to insureds who hold policies with CGU and business interruption losses related to COVID-19.

How does the IAG share price compare to the ASX 200?

Over the last 12 months, the IAG share price has gained 10%, with year-to-date up around 14%. The company’s shares have lost almost 40% of its wealth since July 2019, particularly when COVID-19 hit.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained 25% from this time last year and is up 14% year-to-date. The ASX 200 also reached a record high of 7,632 points in mid-August.

Based on today’s price, IAG presides a market capitalisation of roughly $13.2 billion, with approximately 2.4 billion shares on issue.

The post Why the IAG (ASX:IAG) share price has underperformed the ASX 200 in the last year appeared first on The Motley Fool Australia.

More reading

• How have ASX financial shares performed during the August 2021 earnings season?
• Here’s why the IAG (ASX:IAG) share price is slumping today
• Here’s why the IAG (ASX:IAG) share price is up 10% in a month
• Here’s why the IAG (ASX:IAG) share price is down 3% in a week
• Here’s why the IAG (ASX:IAG) share price is up 6% in the last 3 months

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 owns shares of and has recommended Insurance Australia 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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BHP Group Ltd (ASX: BHP) shares were one of the most popular traded stocks amongst Saxo Capital Markets’ Australian clients in August 2021.

Shares in the iron ore major came in at number three, trailing behind Amazon.com, Inc. (NASDAQ: AMZN) and Fortescue Metals Group Limited (ASX: FMG).

What did Saxo say about BHP shares?

August proved to be a challenging month for the BHP share price and broader resources sector.

Besides the company’s FY21 full-year results, BHP made a number of headlines including plans to cease its dual listing on the London Stock Exchange and confirming its merger with Woodside Petroleum Limited (ASX: WPL).

Saxo commented that:

Client attention shifted to BHP Group in mid-August when the global mining giant announced plans to cease its dual listing on the London Stock Exchange and move its entire shares onto the ASX, where 50% of its stock has long been traded.

Looking over at BHP’s FY21 results, Saxo analysts said:

Like FMG, BHP Group posted a 42% rise in profits for the year to the end of June 2021. Much of which was derived by record-breaking profit margins of 64% from its Pilbara-based mines. There was further positivity on the BHP Group share price when it revealed plans to amalgamate its gas and oil assets within Woodside Petroleum, making Woodside one of the ten leading producers of oil and gas in the world. BHP shareholders will also receive shares in the reformed Woodside Petroleum stock.

Popular, but for the wrong reasons

BHP shares tumbled 14.7% in August, largely triggered by a sudden collapse in iron ore prices.

Approximately 196 million BHP shares traded hands in August, with just over a quarter of its monthly volume taking place the days after its FY21 results announcement.

On 18 August, the BHP share price tumbled 7.07% to $47.70 as investors digested its financial performance and outlook for iron ore. The sharp selloff was met with a significant uptick in volume, with ~25.99 million shares trading hands compared to its 20-day moving average volume of just ~6.09 million.

BHP continued to crater the next day, sliding another 6.35% to $44.67. Volume continued to climb with ~26.38 million shares trading hands compared to a 20-day moving average of ~7.17 million.

Foolish Takeaway

BHP’s volume profile is suggestive that investors might have taken reporting season and the recent weakness in iron ore as an opportunity to sell.

August proved to be a very challenging month for BHP shares, as its year-to-date return shrunk from 26.5% at the beginning to a mere 7.5% by the end.

The post Why BHP (ASX:BHP) shares have been getting these investors excited appeared first on The Motley Fool Australia.

More reading

• Leading broker reveals why these 10 big-name shares have been firing up its clients
• The BHP (ASX:BHP) share price is flat in 2021. But how much has the company contributed to the Australian economy?
• Materials sector lagged the ASX 200 on Tuesday
• Why the Rio Tinto (ASX:RIO) share price is in the red on Tuesday
• Why the BHP (ASX:BHP) share price is slumping 1% today

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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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Its certainly been a great week for the Telstra Corporation Ltd (ASX: TLS) share price.

Whereas the S&P/ASX 200 index (ASX: XJO) has slipped 0.13% in the red since Monday, Telstra shares have climbed 2.3% into the green.

Why is the Telstra share price up 2.3% this week?

The Telstra share price has been on the move since the company reported its FY21 results last month.

In its report, Telstra recognised an approximate 12% decrease in total income of $23 billion and a 9.7% decline in underlying EBITDA from FY20. Both of these results were consistent with management’s guidance.

As a result, the company maintained its dividend of 16 cents per share, payable to shareholders on 23 September.

As such, the company sees a period of “mid to high single digit growth” in FY22, forecasting EBITDA of $7 billion to $7.3 billion. This calls for a 9% year on year growth pattern.

Telstra has also jumped on the COVID-19 vaccination bandwagon, pushing a campaign to encourage all of its customers to go out and get vaccinated against the virus.

For instance, the telco giant has put a message of “#LetsVaxx” on every customer’s mobile phone and is offering “fully vaccinated” customers bonus Telstra points. It is also offering to pay its employees $200 to receive the jab.

The campaign has received mixed reviews, but the support appears to be overwhelmingly positive for Australia’s largest telecommunications provider.

What other tailwinds are behind Telstra shares this week?

In addition to these company-specific drivers to the Telstra share price, several brokers also remain bullish on Telstra shares.

Investment bank Goldman Sachs and stockbroker Morgans believe there is more growth to come for Telstra from FY22, which could positively impact its share price. Each has reiterated their buy/add rating on Telstra shares.

Goldman has set a price target of $4.30 on the Telstra share price, and have forecasted a fully franked dividend of 16 cents per share until FY23, and 18 cents per share from FY24.

Morgans is equally as bullish and has assigned a price target of $4.34 for the Telstra share price. The broker is bullish for reasons of valuation and market dynamics.

As such, the broker’s price targets imply an upside potential of 9.1% and 10.2% from the current market price, respectively.

Given these tailwinds over the last week, it starts to make sense as to why Telstra shares have walked through this week in the green.

Telstra share price snapshot

The Telstra share price has climbed 32% this year to date, extending the previous 12 month’s return of 38%.

Both of these results have outpaced the broad index’s return of around 25% over the past year.

The post This has been a good week so far for the Telstra (ASX:TLS) share price appeared first on The Motley Fool Australia.

More reading

• Leading broker says Telstra (ASX:TLS) share price is a buy
• Here are the 3 heaviest trading ASX 200 shares today
• ASX 200 midday update: BHP & Fortescue fall, Flight Centre storms higher
• Telstra (ASX:TLS) share price struggles amid possible union action
• 3 buy-rated ASX dividend shares with big yields

The author Zach Bristow has no positions 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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Due to ageing populations and improving technologies and treatments, demand for healthcare services is expected to grow strongly over the next few decades.

As a result, the healthcare sector could be a good place to consider investing with a long term view.

But which shares should you consider buying? Two highly rated ASX healthcare shares to consider are listed below:

Healius Ltd (ASX: HLS)

The first healthcare ASX share to look at is Healius. It is one of Australia’s largest pathology and diagnostic imaging providers offering services via a number of brands. These include Dorevitch Pathology, QML Pathology, Laverty Pathology, and Healthcare Imaging Services.

Healius was a very positive performer in FY 2021. For the 12 months ended 30 June, the company reported a 22% increase in revenue to $1,913.1 million and the doubling of its underlying EBIT to $266.5 million.

The standout performer during the year was its key Pathology business. It reported revenue growth of 25% to $1,452.1 million and EBIT growth of 103% to $252.8 million. This reflects strong demand for community and commercial COVID-19 testing.

One broker that believes there’s more to come in FY 2022 is Credit Suisse. Earlier this week the broker retained its outperform rating and lifted its price target to $5.50.

Credit Suisse is positive on the company due to its belief that COVID testing volumes will remain strong for some time to come.

Ramsay Health Care Limited (ASX: RHC)

Another ASX healthcare share to look at is Ramsay Health Care. It provides quality healthcare services to over 8 million patients each year through a network of facilities across 10 countries and over 500 locations.

Although trading conditions have been tough over the last 18 months and recent lockdowns are likely weighing on its performance, the company has been tipped to bounce back strongly. Particularly given the pent-up demand for healthcare services.

Goldman Sachs is a fan of Ramsay. It currently has a buy rating and $74.00 price target on the company’s shares.

The broker believes its valuation is undemanding for a defensive asset leveraged to improving vaccine rates and a favourable growth profile. It also notes that it has material balance sheet optionality. This could support acquisitions or share buybacks.

The post Why analysts rate these ASX healthcare shares highly 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 recommended Ramsay Health Care 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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