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The Appen Ltd (ASX: APX) share price certainly has been out of form in 2021.

Since the start of the year, the artificial intelligence data services company’s shares are down 50%.

This compares to a 12% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Why is the Appen share price under pressure on 2021?

Investors have been selling down the Appen share price this year due to the impact that COVID-19 was having on demand for its services.

In May Appen’s CEO, Mark Brayan, commented: “COVID interrupted many businesses last year and that in turn reduced their digital ad spend for a period. This impacted our major customers’ sources of revenue, and although digital ad spend has bounced back nicely, that experience is driving them to invest in new AI products that are less reliant on advertising.”

Also weighing on the Appen share price were comments about data privacy and anti-trust concerns that were impacting developments.

Mr Brayan said: “Our customers are developing new AI products in response to COVID’s impact on online advertising last year and regulatory pressures such as anti-trust and data privacy. This dictates the data they need for product development and impacts their engineering resource allocations and the volumes and types of data they need from us.”

“As stated before, machine learning is an iterative process, and our customers are switching resources between development projects as they pursue new break-out products. This in turn has impacted a handful of our larger programs,” he added.

Is this a buying opportunity?

One leading broker that believes the weakness in the Appen share price could be a buying opportunity is Citi.

A note from this month reveals that its analysts have retained their buy rating and $18.80 price target on the company’s shares.

This is despite the broker suspecting that a slower recovery in demand could lead to Appen falling short of the market’s first half EBITDA estimates this month due to lower margins.

Citi is expecting EBITDA of US$27 million for the half, which is ~20% lower than consensus estimates.

Based on the current Appen share price of $12.71, Citi’s price target implies potential upside of 48% over the next 12 months.

Citi is more positive on its longer term prospects. It believes Appen is well placed to benefit from the higher spending on artificial intelligence in the future. It also expects the company to leverage its increased capabilities and expand its addressable market.

The post Top broker names Appen (ASX:APX) share price as a buy appeared first on The Motley Fool Australia.

More reading

• Appen share price (ASX:APX) up 6% ahead of earnings this week
• Here are 3 buy-rated ASX growth shares
• Why the Appen (ASX:APX) share price fell 7% last time it reported
• 2 excellent ASX tech shares with strong growth potential
• Why AGL, Appen, CBA, & Rio Tinto shares are tumbling lower

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 Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. 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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Another day of reporting on the ASX has drawn to a close. That means it is time for us to summarise some of the big-name results that you might have missed on the ASX today.

We’ll quickly unpack today’s results and then wrap things back up for tomorrow:

Those that reported on the ASX today

Ansell Limited (ASX: ANN)

Shares in Ansell sank 9.2% after the personal protection equipment seller reported its FY21 full-year results. Despite reporting impressive metrics for FY21, the market focused on the forward guidance — with medical PPE expected to taper off.

The takeaway points:

• Sales of approx. US$2 billion – up 25.6% on the prior corresponding period (pcp).
• Earnings before interest and taxes (EBIT) jumped 56% to US$338 million.
• Net profit after tax (NPAT) surged 57% on the pcp to US$248 million.
• Basic earnings per share (EPS) of US$1.922 – up 60% on the pcp.
• Full-year dividend of US76.8 cents per share (US43.6 cents final + US33.2 cents interim). This is 54% higher than the pcp and represents a dividend yield of 2.63%.

Kogan.com Ltd (ASX: KGN)

The Kogan share price went off the edge of an ASX cliff following its reporting of full-year results for FY21. Shares in the online retailer plummeted 15.8% lower following a significant reduction in earnings due to an increase in costs associated with logistics, acquisition, and management payments.

The takeaway points:

• Gross sales increased 52.7% to $1,179 million
• Revenue jumped 56.8% to $780.7 million
• Gross profit rose 61% to $203.7 million
• Adjusted net profit after tax up 43.2% to $42.9 million
• Reported net profit after tax down 86.8% to $3.5 million
• Kogan.com active customer base up 46.9% to 3,207,000, Mighty Ape up to 764,000
• Cash balance of $12.8 million and no final dividend
• Outlook: No guidance but poor start to FY 2022

Nanosonics Ltd. (ASX: NAN)

To end things on a positive note, the Nanosonics share price soared on the ASX today after the ultrasound probe disinfector manufacturer reported a rebound in performance in its full-year earnings for FY21. The news was met with euphoria, with the share price increasing 21.9%.

The takeaway points:

• Revenue up 3% against the prior corresponding period (pcp) to $103.1 million.
• Significant recovery in the FY21 second half, with revenue up 39% compared to the first half.
• The global installed base rose 13% to 26,750 units.
• Earnings before interest and tax was down 7% to $10.8 million.
• Profit after income tax fell 15% to $8.6 million.

ASX shares reporting next week

It was another busy day on the ASX for reporting. However, tomorrow can lay claim to its own set of exciting companies that are slated to release full-year results.

Some of the big-name companies set to release their financials tomorrow include Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P), Whispir Ltd (ASX: WSP), Worley Ltd (ASX: WOR), WiseTech Global Ltd (ASX: WTC), and Lovisa Holdings Ltd (ASX: LOV).

To see the full line-up check out our ASX Reporting Season Calendar.

The post The ASX reporting wrap-up: Ansell, Kogan, Nanosonics appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, Kogan sinks, Ansell slumps
• Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher
• Nanosonics (ASX:NAN) share price up 28% after earnings beat and new product announcement
• Which ASX 300 shares are the biggest winners and losers on Tuesday?
• Ansell (ASX:ANN) share price plunges 10% despite dividend boost

Motley Fool contributor Mitchell Lawler owns shares in Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia has recommended Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Monday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Cochlear Limited (ASX: COH)

According to a note out of Citi, its analysts have retained their sell rating but increased the price target on this hearing solutions company’s shares to $220.00. Citi has reduced its earnings forecasts for the coming years due to its expectation of lower margins. It also fears that the market is expecting too much from Cochlear in the near term and that it may take longer than previously expected for sales to normalise. The Cochlear share price was trading at $236.69 today.

Evolution Mining Ltd (ASX: EVN)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $3.90 price target on this gold miner’s shares. Goldman notes that Evolution delivered a result largely in line with expectations in FY 2021. And while the broker has increased its earnings estimates for the coming years to reflect increased production at Mungari and the inclusion of Kundana, it isn’t enough for a change of rating. The broker has retained its sell rating on relative valuation grounds and due to risks to its growth profile. The Evolution share price was fetching $4.04 on Tuesday.

NIB Holdings Limited (ASX: NHF)

Another note out of Citi reveals that its analysts have downgraded this private health insurer’s shares to a sell rating with a reduced price target of $6.30. This follows the release of a disappointing full year result for FY 2021. Citi was particularly disappointed with the performance of NIB’s international business. It also isn’t confident on the outlook for the business and feels its shares are fully valued at the current level. The NIB share price was trading at $6.59 today.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• NIB and Ampol share prices fall, new record for Domino’s. Scott Phillips on Nine’s Late News
• Why Ansell, Kogan, Monadelphous, & NIB shares are tumbling lower
• 5 things to watch on the ASX 200 on Tuesday
• The ASX reporting wrap-up: Charter Hall, Ampol, NIB Holdings
• ASX 200 rises, NIB plummets, Sonic drops

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and NIB Holdings 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 S&P/ASX 200 Index (ASX: XJO) rose by around 0.2% today to 7,503 points.

Here are some of the highlights from the ASX:

Kogan.com Ltd (ASX: KGN)

The Kogan share price fell around 16% after the e-commerce ASX share announced its FY21 result. It was the worst performer in the ASX 200.

Gross sales rose by 52.7% to $1.18 billion, with revenue growing by 56.8% to $780.7 million. Gross profit rose even quicker, growing by 61% to $203.7 million.

Adjusted net profit after tax (NPAT), which excludes certain expenses like share-based compensation and acquisition costs, saw growth of 43.2% to $42.9 million. Adjusted earnings per share (EPS) increased by 27.2% to $0.41.

But the reported profit saw a major reduction. Net profit fell 86.8% to $3.5 million, reflecting one-off inventory, logistics and Mighty Ape acquisitions costs. EPS dropped 88.3% to $0.03.

Kogan active customers increased 46.9% to 3.2 million. But Mighty Ape active customers went up to 764,000.

Due to ordering too much inventory, it experienced significantly higher storage costs, which saw variable costs rise to $44.9 million, up from $20.1 million in FY20. It also had to spend on marketing to lower its inventory levels to the size relevant for the business.

Kogan also suffered from logistics ‘detention charges’ of $7.7 million incurred as part of its variable costs, as well as COVID-19 related warehousing and supply chain interruptions.

The board decided not to pay a final dividend.

In a trading update for FY22, it said that gross sales were 5.1% above July 2020. The July 2021 gross profit margin was stronger than June 2021, but lower than July 2020. It generated $2.1 million of adjusted EBITDA, which reflected ongoing high operating costs, though this is “gradually reducing”.

In the first 18 days of August 2021, it has seen further improvement, with gross sales 24.5% above July and gross profit 25% above July.

Ansell Limited (ASX: ANN)

The Ansell share price was another of the ASX 200 shares to suffer a big sell-off. It dropped over 9% today.

The glovemaker reported its FY21 result that showed total sales increased by 25.6% to $2.03 billion. This result was driven by organic growth of the healthcare division, with a rise of revenue of 34.8%. There was volume growth for surgical and life sciences, and favourable pricing and mix for the exam and single unit segment.

Total earnings before interest and tax (EBIT) grew by 56% year on year to US$338 million. This was driven by higher production volume and operating leverage.

Net profit increased by 57.5% to US$246.7 million. The board decided to increase the full year dividend by 53.6% to US 76.8 cents.

Whilst Ansell acknowledged that COVID-19 will continue to feature in FY22, it’s expecting lower demand in areas that have benefited the most during the onset of COVID-19, such as chemical body protection and undifferentiated exam/single use gloves. Pricing is expected to feature throughout this financial year, both positively and negatively.

The ASX 200 share also said that there have been more cases in South East Asia, causing disruption to its factories and suppliers in the region, which have hurt operations. It could hurt sales in the first half of FY22. Increased freight costs and shipping delays are also expected throughout FY22.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price was the best performer in the ASX 200 today, rising by 22%.

It reported in FY21 that revenue went up 3% to $103.1 million, with gross profit increasing 6% to 80.4%.

There was a “significant” recovery in the second half with revenue of $60 million, up 39% compared to the first half.

Full year consumables revenue was up 9% to $76.4 million, with capital revenue of $26.7 million (down 11%).

EBIT fell 7% to $10.8 million, whilst profit after tax declined 15% to $8.6 million. Free cashflow for the year was $5.9 million, with second half free cashflow of $8.3 million.

Management said that there has been a significant increase in the Trophon opportunity in North American, resulting from an increased estimate of the total addressable market. The change was from 40,000 units to 60,000 units, reflecting growth in the ultrasound market over the last eight years.

It’s expecting a return to double digit revenue growth in FY22, driven by an ongoing increase in the installed base globally and increased usage of consumables across all regions.

Nanosonics also launched a new digital product platform called ‘Nanosonics AuditPro’. It is a digital workflow compliance management system with potential applications across a range of medical instruments.

The post ASX 200 rises, Kogan sinks, Ansell slumps appeared first on The Motley Fool Australia.

More reading

• The ASX reporting wrap-up: Ansell, Kogan, Nanosonics
• Why the Coles (ASX:COL) share price has underperformed the ASX 200 in the last year
• Here are the 3 most traded ASX 200 shares this Tuesday
• Here are the top 10 ASX 200 shares on Tuesday
• Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia has recommended Ansell Ltd. 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 Janison Education Group Ltd (ASX: JAN) share price edged higher in trading today. This comes after the educational technology company released its full-year results for the 2021 financial year.

At the final bell today, Janison shares were up 0.6% to 84.5 cents.

Janison share price climbs after revenue growth of 38%

The Janison share price finished the day in positive territory after the company delivered its FY21 results for the 12 months ending 30 June 2021. Here are some of the highlights:

• Total group revenue of $30.2 million, up 38% on the prior corresponding period (FY20 $21.9 million);
• Gross margin of 55%, up 9 percentage points (FY20 46%);
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $3 million, up 21% (FY20 $2.5 million);
• Net loss after tax (NPAT) of $3.2 million, down 49% (FY20 $2.2 million);
• $23 million cash on hand with no debt

What happened to Janison in FY21?

Janison said FY21 has proven to be a successful year operationally, with group revenue expanded through its three main drivers. This includes the PISA for Schools rollout (available in 15 countries, up from 7 in FY20), ICAS growth of $6 million in new revenue, as well as capturing acquisition and expansion opportunities.

The Programme for International Student Assessment (PISA) is an online platform that measures a 15-year-old’s ability in mathematics, science, and reading.

Annual recurring revenue (ARR) surged by 117% to $18.3 million, weighted heavily towards new clients and products. 

In addition, the sales mix continued to improve as customers opted for the company’s standardised assessment platform. In turn, this led to Janison achieving a more efficient business with higher gross profit margins.

The company also said it is continuing to invest in its core assessment platform to maintain its market-leading position.

What this means for the Janison share price going forward remains to be seen.

What’s next for Janison in FY22?

Looking ahead, Janison expects sales momentum and revenue growth to run into FY22. It sees education, and assessments, continuing to be digitised post-COVID-19, further expanding the company’s footprint.

The global education technology market is currently worth approximately US$268 billion, and is forecast to rapidly increase.

Janison noted school lockdowns have the potential to delay revenue but also present opportunities, such as its remote exams.

The company however did not provide a sales or profit guidance for FY22.

The post Janison (ASX:JAN) share price up after strong FY21 financial scorecard appeared first on The Motley Fool Australia.

More reading

• The ASX reporting wrap-up: Ansell, Kogan, Nanosonics
• Leading brokers name 3 ASX shares to sell today
• ASX 200 rises, Kogan sinks, Ansell slumps
• BHP (ASX:BHP) share price lifts despite credit downgrade risk
• The next Bitcoin? Why investors are bullish on fast-rising altcoin Cardano

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. owns shares of and has recommended Janison Education Group Limited. The Motley Fool Australia has recommended Janison Education 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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August has been a painful month for the BHP Group Ltd (ASX: BHP) share price, following a sharp 16% selloff last week.

BHP shares have managed to edge 1.3% higher from Friday’s close, finishing Tuesday’s session at $44.92.

Alongside BHP’s full year FY21 results last week, the company also revealed a merger with Woodside Petroleum Limited (ASX: WPL) to combined their respective oil and gas assets via an all-stop merger.

The Australian Financial Review (AFR) reported concerns that BHP will be less diversified following its divestment of oil and gas assets, with S&P Global threatening to downgrade the miner’s credit rating to a record low.

Oil divestment might not be a good thing after all

The AFR looks back at BHP’s history of “shedding assets and reducing the number of commodities it produces … having quit businesses such as diamonds, manganese, alumina and aluminium over that period while formulating plans to exit oil, gas, thermal coal and some of its coking coal mines”.

In a post-divestment world, BHP’s production portfolio will comprise copper, iron ore, metallurgical coal, energy coal and nickel.

More recently, BHP approved a US$5.7 billion investment in the Jansen Stage 1 potash project, aligned with its strategy of growing exposure to future-facing commodities in world class assets.

According to the company’s FY21 results, it said that this investment would provide “increased leverage to key global mega-trends including rising population, changing diets, decarbonisation and improving environmental stewardship”.

The Jansen Stage 1 project is expected to begin production in the 2027 calendar year, followed by a ramp up period of two years.

The AFR reported that “S&P says those ‘future-facing’ commodities are unlikely to fill the hole left by the petroleum division in the immediate future”.

“We could lower our ratings on BHP by up to two notches in the coming months, based on our updated review of the strength of the group’s business risk profile, if the divestment of its petroleum assets takes place as proposed. The rating action will be subject to our reassessment of the company’s portfolio compared to its immediate peers.”

BHP share price snapshot

At its highest point this year, the BHP share price was up 28.56% year-to-date.

Last week’s harsh selloff has shrunk these gains to a measly 5.87%.

BHP investors should note its shares will go ex-dividend on Thursday, 2 September for a final dividend of US$2.00 per share.

The post BHP (ASX:BHP) share price lifts despite credit downgrade risk appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) share price free falls in August, analysts say iron ore pressures will persist
• How do BHP (ASX:BHP) earnings compare to Woodside Petroleum’s?
• Pilbara Minerals (ASX:PLS) share price bounces back, up 8% on Monday
• What’s moving the ASX 200 Index (ASX:XJO) on Monday?
• ASX 200 Weekly Wrap: Miners drag ASX back to earth

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 Bitcoin (CRYPTO: BTC) price has slipped back below the vaunted psychologically important US$50,000 level.

Having traded as high as US$50,496 during the past 24 hours, Bitcoin is down 1.4% since this time yesterday, currently trading for US$49,549.

Still, the world’s biggest crypto by market cap remains up 70% since 1 January.

Where it heads next is up for debate.

Taking a technical analysis view, global multi-asset investment platform eToro’s market analyst Josh Gilbert said, “If BTC can break above the next resistance level at $51,000 and hold, then I expect to see further upside as demand increases.”

But there’s more to the world of cryptos than Bitcoin.

A lot more.

Rising altcoin star Cardano claims number 3 spot

Yes, we’re looking at you Cardano (CRYPTO: ADA).

This time last year you could have picked up 1 Cardano for 12 US cents.

Having gained another 2.8% over the past 24 hours, the altcoin is now worth US$2.88. That gives it a market valuation of US$92.9 billion.

That’s enough to vault Cardano into the number 3 crypto spot. It now trails only Ethereum (CRYPTO: ETH) – market valuation of US$391.4 billion – and Bitcoin, with its market valuation of US$928.8 billion.

In other words, if today is the first time you’ve heard of Cardano, it’s unlikely to be the last.

Could this be the next Bitcoin?

While Cardano has a long way to go before it overtakes Bitcoin in terms of market valuation, don’t forget that only 12 months ago it was trading for a mere 12 US cents.

Gilbert said, “We know that investors are bullish on ADA, as it was the most traded cryptoasset globally by eToro investors in Q2 2021.”

According to Gilbert:

While BTC continues to be the most dominant cryptoasset, it has been recently outperformed by Cardano (ADA). ADA has reached new record highs trading at US$2.88, up more than 1,480% year-to-date.

Gilbert adds that, “ADA is the largest altcoin by market cap to reclaim a new all-time high since the crypto sell-off in May 2021.”

Bitcoin is still some 24% below its mid-April record highs of US$64,829. Ether, currently at US$3,334, also remains down 24% from its US$4,382 record high reached in mid-May.

So why all the investor enthusiasm for Cardano?

According to Gilbert:

The Alonzo upgrade for ADA, which will provide smart-contract capabilities to the network, is set to be fully released by September 2021… Once the upgrade is complete, ADA will be in a solid position to challenge Ethereum (ETH) for the De-Fi crown. The price appreciation of ADA with benefits such as staking makes it a standout to retail investors.

Whether Cardano continues its march higher or is due for a sharp retrace remains to be seen.

But for now, it would seem, Bitcoin has a new challenger.

The post The next Bitcoin? Why investors are bullish on fast-rising altcoin Cardano appeared first on The Motley Fool Australia.

More reading

• Bitcoin rockets past US$50,000 as analysts eye October price catalyst
• Up 50% in a month! Bitcoin is back over US$50,000
• 1 smart way to invest in Dogecoin without buying cryptocurrency
• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• Cardano reaches new milestone as market cap narrows with Bitcoin

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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 Reece Ltd (ASX: REH) share price will be on watch on Wednesday.

This follows the release of the plumbing parts company’s full year results after the market close today.

Reece share price on watch after reporting strong profit growth

• Sales revenue up 4% to $6,271 million
• Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) up 11% to $720 million
• Net profit after tax up 25% to $286 million
• Earnings per share lifted 10% to 44 cents
• Fully franked final dividend doubled to 12 cents per share, bringing full year dividend to 18 cents per share (up 50% year on year)

What happened for Reece in FY 2021?

For the 12 months ended 30 June, Reece reported a 4% in sales revenue to $6,271 million.

This was driven by a 9% increase in ANZ revenue to $3,154 million and an 11% constant currency increase in US revenue to US$2,333 million. The latter was flat year on year in Australian dollars at $3,117 million due to the impact of foreign exchange.

Reece’s earnings grew at a quicker rate on a normalised basis thanks to margin expansion and operational discipline. Normalised EBITDA grew 11% to $720 million over the 12 months.

This comprises a 17% increase in normalised ANZ EBITDA to $496 million and a 10% lift in normalised US EBITDA to US$167 million.

What did management say?

Reece’s CEO and Managing Director, Peter Wilson, was pleased with the way the company overcame numerous challenges during FY 2021.

He said: “FY21 presented many challenges. The evolving environment due to the pandemic, the Texas freeze and the Australian bushfires tested us. But it’s also shown how resilient our business is.”

“This year, we cemented our 2030 vision – to be the trade’s most valuable partner, helping them succeed in a digital world. We’ll do this by being brilliant at the fundamentals of our operations, being both strategic and opportunistic to grow the business and fostering a culture of innovation. This approach, coupled with construction activity being at an all-time high, and our customers being busier than ever, has led to record results for the Group.”

What’s next for Reece?

No guidance or trading update for early in FY 2022 has been provided. This could potentially weigh on the Reece share price on Wednesday.

The post Reece (ASX:REH) share price on watch after 25% increase in FY 2021 profits appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today

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

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The Coles Group Ltd (ASX: COL) share price did not having a fantastic day today. At market close, Coles shares are down a nasty 3.24% to $18.23 a share. That’s in stark contrast to the S&P/ASX 200 Index (ASX: XJO), which finished the day up 0.18%, at 7,503 points.

But Coles investors should be used to a dash of underperformance by now. That’s because the Coles share price is also trailing the ASX 200 in 2021 so far. While the ASX 200 is up a healthy 12.25% year to date, Coles shares are down 1.46% over the same period.

Over the past year, the story is not much better. Whilst the ASX 200 has put on 21.77% over the past 12 months, Coles shares have gone backwards by 3.19%. In other words, the Coles share price has underperformed the ASX 200 by roughly 25% in the past year. Ouch.

So what gives?

Why have Coles shares underperformed the ASX 200 over the past year?

Like many things in life, some of those numbers are relative.

Part of the reason why the ASX 200 has had such a good 12 months is because of how much it fell during the COVID-induced market crash last year. While the ASX 200 fell by roughly 33% between 21 February 2020 and 20 March 2020, Coles shares actually rose over this same period. We can probably thank the very public panic buying that was going on back then for investors’ faith in Coles shares at the time.

So in other words, one of the reasons the ASX 200 has outperformed Coles shares over the past year is that they simply had more headroom to recover in the months following the crash. Since Coles really didn’t fall that much, there was less room to rise when the fear left the markets.

But we can’t just blame this for Coles’ more recent woes.

Half-year earnings disappoint

Another major anchor on Coles shares over the past year was its last earnings report. Not the one that the company delivered earlier this week (which has been quite warmly received). Rather, the half-year report we saw all the way back in February.

Although Coles delivered some healthy numbers at the time, investors seemed really spooked by the company’s warnings about the future. Here’s what Coles’ management said at the time:

Depending on COVID-19, vaccine roll out and efficacy, and other factors, sales in the supermarket sector may moderate significantly or even decline in the second half of FY21 and into FY22. Coles will be cycling elevated sales from COVID-19 in Supermarkets late in the third quarter, for the remainder of the second half, and most of FY22.

This really turned investors off Coles, evidenced by the fact that the Coles share price fell by more than 15% over the subsequent fortnight.

About the Coles share price

But everything is relative. Since bottoming out at $15.28 a share a few weeks after this report was released, Coles is now up almost 20% from those lows. The ASX 200 has ‘only’ managed to add around 12.4% over the same period.

At the current Coles share price, the grocery giant has a market capitalisation of $24 billion, a price-to-earnings (P/E) ratio of 24.35 and a dividend yield of 3.33%.

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

More reading

• Here are the 3 most traded ASX 200 shares this Tuesday
• Here are the top 10 ASX 200 shares on Tuesday
• Energy sector leading the ASX 200 shares on Tuesday
• ASX 200 midday update: Kogan crashes, Nanosonics rockets
• 5 things to watch on the ASX 200 on Tuesday

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

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The S&P/ASX 200 Index (ASX: XJO) has enjoyed a pretty decent day of trading this Tuesday. The ASX 200 closed at 7,503 points, up 0.17% for the day.

But let’s now check out the ASX 200 shares that are topping the trading volume charts today.

The 3 most traded ASX 200 shares this Tuesday

South32 Ltd (ASX: S32)

After appearing on this list yesterday, diversified ASX 200 miner South32 is back again with 19.75 million of its shares making their way around the market today.

With no major news or announcements out of the company today, we can probably assume this relatively high trading volume is the result of today’s share price movements.

South32 ended the day up 1.41% to $2.88 a share. Since last Friday, the company has gained around 5.5%. It’s probably this bump in valuation that is behind so many shares trading today.

Scentre Group (ASX: SCG)

ASX 200 real estate investment trust (REIT) Scentre is another share to check out today. This REIT has seen 20.54 million units change hands on Tuesday.

This is almost certainly the result of Scentre’s earnings report which was released this morning, and has elicited a strong response from investors.

At close of trading today, Scentre units were up a very pleasing 6.67% to $2.72 apiece. As my Fool colleague Bernd covered earlier today, this REIT reported a 28% rise in operating profits and has also announced the resumption of dividend distribution payments.

Pilbra Minerals Ltd (ASX: PLS)

As per usual, ASX 200 lithium producer Pilbara topped the trading volume charts this Tuesday, with a staggering 24.58 million Pilbara shares swapping hands. Like with South32, there was no major news or announcements out today.

However, the Pilbara share price has had quite a bumpy day. This morning, the company was up almost 5% but trended lower, before ending the day flat at $2.25 a share.

It’s likely this share price volatility that is behind the relatively large volume of shares bought and sold today.

The post Here are the 3 most traded ASX 200 shares this Tuesday appeared first on The Motley Fool Australia.

More reading

• Why the Coles (ASX:COL) share price has underperformed the ASX 200 in the last year
• Here are the top 10 ASX 200 shares on Tuesday
• Energy sector leading the ASX 200 shares on Tuesday
• ASX 200 midday update: Kogan crashes, Nanosonics rockets
• Scentre (ASX:SCG) share price leaps higher on 28% profits boost

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 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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