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The Webjet Limited (ASX: WEB) share price is in focus this month. Investors are keeping an eye on the ASX travel share amid the August reporting season. That’s despite Webjet not expecting to report its half-year results until November 2021.

For those interested in the Webjet share price and its outlook, here are a few things to keep in mind.

What’s in store for the Webjet share price?

Especially in times like these, it can pay to focus on a company’s long-term prospects rather than the immediate headwinds.

Let’s start with what analysts and brokers are saying about Webjet at the moment. Arguably, the most information analysts ever have about a company is following the release of its half or full-year results.

Winding the clock back to 20 May 2021, Webjet had just released its full-year earnings. Goldman Sachs reiterated its buy rating with a revised price target of $6.40 per share despite Webjet’s revenue falling 9.7% below expectations.

A broker note in mid-July reiterated that $6.40 price target despite the tough operating environment. The broker also noted the potential for recent underperformance to create a favourable buying opportunity for buy-and-hold investors.

However, the Webjet share price closed at $4.95 on Thursday afternoon. That means the ASX travel share has edged lower in 2021 but remains up 64.5% in the last 12 months.

Other travel shares that were smashed throughout 2020 have also rebounded strongly after coronavirus restrictions took hold of the industry and economy last year.

Webjet hasn’t had any price-sensitive ASX announcements since its 19 May 2021 full-year results. That means investors are trying to assess the travel operator’s earnings prospects right now.

Obviously, continued COVID-19 lockdowns are not good for business in the travel sector. Disrupted travel, both domestically and internationally, continue to mean companies like Webjet are operating below capacity.

Large swathes of the population in lockdown has seen the Webjet share price seesaw throughout July, partially offset by hopes of increased vaccination rates.

What lies ahead in FY2022?

Investors will be hoping current restrictions ease and the tourism sector rebounds strongly on the back of pent-up demand. Achieving vaccination milestones is an important step for confidence that the travel industry will be able to operate without major disruption going forward.

Signs of strong activity, such as high traffic numbers from Sydney Airport Holdings Pty Ltd (ASX: SYD), could provide a boost for the Webjet share price.

Investors will be hoping for further indications of where the ASX travel share is going ahead of the November half-year result.

The post What’s the outlook for the Webjet (ASX:WEB) share price? appeared first on The Motley Fool Australia.

More reading

• If you’d invested $2,000 in Webjet (ASX:WEB) shares 10 years ago, here’s what it would be worth now
• Here’s why the Webjet (ASX:WEB) share price moved in circles during July
• Webjet (ASX:WEB) share price slumps on extended QLD lockdown
• These are the 10 most shorted ASX shares
• Own Webjet (ASX:WEB) shares? Here’s what to look at during reporting season

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet 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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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, TMS Capital portfolio manager Ben Clark reveals his 2 hottest ASX shares right now and what he regrets about his Afterpay stake. Also read which two of his fund’s holdings are still going strong after 5 years.

Hottest ASX shares now

The Motley Fool: What are the 2 best stock buys right now?

Ben Clark: Another stock that’s been held for us since inception is Fisher & Paykel Healthcare Corp Ltd (ASX: FPH). 

Now they have two key parts of their business. The first is they’re the world’s largest manufacturer, or one of the largest manufacturers, of breathing devices. So they had this COVID boom because of the demand (for) ventilators, breathing masks and related things. At the same time, they sell a lot of the devices that are used in elective surgeries, et cetera. So if your anaesthetist gives you a gas or something, it’s probably through some Fisher and Paykel devices. And that part of the business was a real struggle for them because we all know elective surgery went to zero in many markets around the world. 

But overall you’d have to say it boomed.

And then they’re the third largest player globally in sleep. So they compete against Resmed CDI (ASX: RMD) and Koninklijke Philips NV (AMS: PHIA), who own Respironics. 

They’re an out-of-cycle reporter — they reported in May an incredible result. I think it was like an 82% increase in NPAT (net profit after tax), but they actually got sold off because for the first time I can remember, they couldn’t give guidance. 

There was a good summary that your readers could look at in that announcement, which summed up the moving parts going on globally in hospitals and ventilator demand. Forecasting with COVID continually changing and different countries reopening and in lockdowns and battling the virus, trying to estimate what your sales look like in that environment, it’s almost impossible. 

So they did the smart and right thing, which is just to say, “Look, these are the things that could do well for us and might not do well for us.”

What they’re going to turn out to be is incredibly hard to say, and you’re going to have to do your own work to an extent. I believe with the Delta outbreaks we’re seeing around the world, the demand for the ventilators is still going to be better than (expected). The market was saying, “Look, no one’s going to need any more ventilators. We’re getting past COVID.” But I think that has changed somewhat.

Then the sleep business, which was a real battler during COVID as Resmed found, to me is going to be a big winner out of the Respironics recall. It just doesn’t, to me, feel like that’s being factored into the share price at the moment. 

We’re seeing Resmed’s risen 30% or something over the past couple of months. Fisher and Paykel’s gone sideways. 

In a market where growth stocks are hot again, I think now if we had this call 3 or 4 months ago, I would have said 15 of our 20 stocks look like really good buys. Now it’s probably less than 5 just because the prices have re-rated. But Fisher and Paykel’s one that doesn’t, to me, look like it has.

The second one is actually probably the newest stock in the portfolio, which is a business called Deterra Royalties Ltd (ASX: DRR). It is the only resource stock that we own in the portfolio. 

This is a really interesting company. It is the first mining royalty company to trade on the Australian stock exchange. It was spun out of Iluka Resources Limited (ASX: ILU) last year. Pretty much its only asset is a royalty stream over a mine called the MAC, which is one of BHP Group Ltd (ASX: BHP)’s biggest iron ore mines in Western Australia. It gets 1.232% of revenue that is pulled out of that mine. So there are about 57 million tons of iron ore being produced each year. This mine has a mine life through to the 2070s, it’s estimated at this stage.

So times 57 million by whatever you think the iron ore price will sustainably be by 1.232%. And you get a number. 

Normally that would be interesting to us. But because it’s such a capital light business, it literally does not have to do a thing to get sent a cheque from BHP every quarter. I’ve never seen anything like it.

MF: Considering how dominant mining is in Australia, it’s amazing that it’s the only mining royalty company on the ASX, isn’t it? 

BC: Yeah. But think about where some of the wealthiest Australians have got their wealth from. It’s mining royalties. You look at the Hancock families. Gina Rinehart. I think the best ones are privately owned. And it’s almost like an infrastructure-style business where you’re kind of clipping the ticket.

But where the real excitement lays for us is that BHP has completed, after several years, the expansion of the MAC. And over the next 2 years, we’ll move from producing 57 million tons to 146 million tons of iron ore per annum from this mine. And so the max royalty is going to triple over the next 2 years. 

But the question mark is what will the iron ore price be? We think the iron ore price will be a fair bit lower over the next couple of years than where it is now.

But with the tripling of the production, we still think the profit of this business could materially be higher. And we don’t think the market is looking. I tend to find the market at best looks 6 to 12 months ahead… It’s just a bit too far outside the time zone for it to start getting priced in. So that’s one that I think looks pretty good.

ASX share to buy and hold

MF: If the market closed tomorrow for 5 years, which stock would you want to hold?

BC: This is probably not the most exciting answer in the world, but it would be CSL Limited (ASX: CSL), which is the third largest holding in the fund. And again, it’s been held since inception. 

I picked that one because I think, come hell or high water, whatever gets thrown at us over the next 5 years that you couldn’t do anything about because you couldn’t trade the shares, it is a business that is incredibly resilient. You can sleep well knowing CSL will come through it because it has the balance sheet (and) the industry it operates in is forecast to continually grow. 

In the short term we think it looks good because we saw plasma donations across the United States dry up over the last year. Unfortunately, when people go and donate blood in America through CSL’s collection centre network, most of the people are poor. The United States is one of the only Western countries that will allow companies to pay for people’s blood. The reality of COVID in America last year and probably to this day to a lesser extent, is that most poor people in America don’t have health insurance. And if you got COVID, there was a really good chance you would die. And so, to get paid $100 to donate blood or maybe die, people just weren’t turning up to donate.

Also, (President Joe) Biden sent out $3,000 or $4,000 to every household. So there was cash coming in to this demographic. And that was a real issue for CSL. At the same time elective surgery around the world was cancelled. So there was a bit of a drop-off in demand for the blood products. And there was more cost in running the centres. People had to be spread further apart. They had to pay more to the people working in the centres. They had to clean the centres more frequently. 

Everyone goes on about the vaccines with CSL, it’s a good part of the business. (But) it’s not going to really turn the needle. It’s the blood collection business that’s the engine that drives CSL and that’s had a really difficult year and it should start to accelerate.

So I think you’ve got short-term earnings growth starting to go again, but if the market closed for 5 years, I just don’t think you’d lose a night’s sleep knowing you can’t trade CSL.

Regrets, I’ve had a few

MF: Is there a move you regret from the past? For example, a missed opportunity or buying a stock at the wrong time or price.

BC: Oh, look, there have been plenty. There have been so many, I couldn’t even narrow them down. 

I would look back and say we started out talking about Afterpay Ltd (ASX: APT). Skimming that down to what we thought was a good risk-adjusted position, that killed us in hindsight. 

If we just held what we originally owned… The fund’s done 15.5% per annum since inception — it probably would have been closer to 20% just on that one stock, as crazy as that sounds. That’s quite extraordinary. 

Your mind tells you things are cheap when they fall, and they’re expensive when they rise. If I look back and thought, “What’s the mistake that has been made?” it’s probably been trimming winners or selling a couple of winners and putting that money into things that you felt hadn’t performed as well, were looking cheaper, and might have a bit of a catch-up. 

Almost inevitably that doesn’t work out the way you think it’s going to. The winners keep going up and the ones that have struggled and you perceive to be “cheaper”, actually aren’t. They might actually be more expensive because the market is onto a change that’s happened with the business.

One I’d put into that category that has been a poor performer for us, has been Appen Ltd (ASX: APX). Now we did skim some money out of Appen in the high $30s. So that was good. And sometimes trimming your winners does work, but we did go back to it after it fell, when it continued to fall. And clearly the issues that it’s facing, particularly (the) suspending of its big customers, has lasted longer than we thought it would and has affected the business to a bigger extent than we thought.

The post How owning too much Afterpay (ASX:APT) was our biggest regret appeared first on The Motley Fool Australia.

More reading

• ResMed (ASX:RMD) share price on watch after beating expectations in FY21
• 5 things to watch on the ASX 200 on Friday
• Square might crash the Afterpay (ASX:APT) and Westpac partnership
• Should PayPal investors be worried about Square’s Afterpay takeover?
• It hasn’t been a great 2021 so far for the CSL (ASX:CSL) share price

Motley Fool contributor Tony Yoo owns shares of AFTERPAY T FPO, Appen Ltd, and CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, and CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended ResMed Inc. 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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Market watchers will be well aware of the struggles the AGL Energy Limited (ASX: AGL) share price has faced lately.

After starting the year trading for $12.12 apiece, AGL shares are currently trading for $7.52 per share.

The company has recently been battling to sell the market on its contentious demerger plan. However, confidence in the energy giant seems to be lost.

But does AGL’s ongoing struggle make it a good buy?

As Warren Buffet once said, “we simply attempt…to be greedy only when others are fearful”.

Let’s take a look if now could be a good time to follow Buffet’s advice and take on AGL shares.

Is AGL a good buy?

As many investors have no doubt said, ‘the most you can lose is 100%’, and AGL is certainly trying that out for size.

Its fallen 70% over the last 4 years. However, it does have a plan for turning its bad luck around.

AGL outlined its plan for its demerger late last month to the detriment of its share price.

AGL said the demerger will see it split into 2 companies. The first will be named Accel Energy and take over the company’s energy generation business, including its coal mines.

The other will go by AGL Australia. It will be a carbon neutral energy wholesaler.

AGL plans for those who hold AGL shares at the time of the demerger to end up with one share in each of the resulting listed companies. Accel Energy will retain between 15% and 20% of AGL Australia.

So, it is a good time to buy? As noted above, there’s only so much a company’s shares can drop.

Therefore, investors who have faith in AGL’s demerger plan, as well as a high-risk tolerance, might want to start thinking about getting the energy giant in their portfolio before the demerger goes ahead. Or, before AGL manages to inspire the general market’s confidence, as that would assumably boost its share price.

Additionally, the company is reportedly looking to purchase embattled solar company Autonomous Energy, which could provide a step towards AGL’s goal of decarbonising its business.

Of course, there’s always the risk that AGL won’t be able to turn its bad luck around. Additionally, all investments should be individual decisions that take into account an individual’s investment style, portfolio, and risk tolerance.

AGL share price snapshot

The AGL share price has fallen 37% since the start of this year.

It is also 55% lower than it was this time last year.

The company has a market capitalisation of around $4.6 billion, with approximately 623 million shares outstanding.

The post Could it be time to consider buying AGL (ASX:AGL) shares? appeared first on The Motley Fool Australia.

More reading

• Own AGL (ASX:AGL) shares? Here’s what to look for during reporting season
• It hasn’t been a great week for the AGL (ASX:AGL) share price
• The AGL (ASX:AGL) share price just hit its lowest point in 17 years
• The AGL (ASX:AGL) share price is down 60% in 5 years. But have the dividends paid off?
• It hasn’t been a great month for the AGL (ASX:AGL) share price

Motley Fool contributor Brooke Cooper 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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With savings accounts and term deposits still offering very low interest rates, the share market arguably remains the best place to earn a passive income.

But with so many dividend shares to choose from, it can be hard to decide which ones to buy.

To help narrow things down, I’ve picked out two that are highly rated right now. They are as follows:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. It is a real estate investment trust with a focus on social infrastructure properties.

Demand for its properties has been very strong, leading to the company recently reporting an occupancy rate of 99.7%. But perhaps the best thing is that these tenants are locked in for the long term, with the Charter Hall Social Infrastructure REIT boasting a weighted average lease expiry (WALE) of over 14 years.

And with around two-thirds of its leases on fixed rent reviews, this bodes well for its rental income growth over the next decade.

Goldman Sachs is positive on the company. It currently has a conviction buy rating and $3.84 price target on its shares. At the current price, Goldman is forecasting yields growing from ~4.5% in FY 2021 to well beyond 5% in FY 2022 and FY 2023.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to look at is this supermarket operator. It could be a top option for investors due to its very positive long term outlook for earnings and dividend growth.

This is being underpinned by its Refresh Strategy, which is cutting costs, making Coles more efficient, improving its use of technology, and boosting its online business and distribution.

Goldman Sachs is also very positive on Coles and has a buy rating and $19.40 price target on its shares.

Its team are forecasting solid earnings and dividend growth over the medium term. In respect to dividends, the broker expects dividends per share of 62 cents in FY 2021, 67 cents in FY 2022, and 73 cents in FY 2023. Based on the latest Coles share price of $18.12, this will mean fully franked yields of 3.4%, 3.7%, and 4%, respectively.

The post Analysts name 2 growing ASX dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• The Coles (ASX:COL) share price has gained 3% this week. Here’s why
• Here’s why the Coles (ASX:COL) share price is up 7% this last month
• Top broker names 2 ASX shares for retirees
• ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high
• 2 high quality ASX dividend shares with big yields

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

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The National Australia Bank Ltd. (ASX: NAB) share price has been performing well lately, but is it a good buy for its dividends?

The NAB share price has gained 15.4% year to date, with Goldman Sachs analysts believing it will boost higher in the near future.

The bank also boasts a dividend yield of 3.39%.

But is August a good time to buy NAB shares for the dividends? And how does it compare to its S&P/ASX 200 Index (ASX: XJO) banking peers?

Let’s take a look.

Is NAB worth buying for its dividend?

NAB has been handing out dividends to its shareholders since 1983.

Wondrously, between 2014 and 2018, NAB’s interim and final dividends were consistently both 99 cents.

In 2019, both the bank’s interim and final dividends were 83 cents. While in 2020, perhaps understandably, they slipped to 39 cents apiece due to the pandemic.

NAB’s 2021 interim dividend was valued at 60 cents, leaving the company with a dividend yield of 3.39%.

Historically, the bank has announced its final dividend in November. It has also historically given a full-year dividend of the same value as its interim dividend.

That means it’s likely NAB’s 2021 final dividend will be worth 60 cents per share.

The NAB share price is predicted to gain in the near future, while its dividend might not increase until May 2022. Thus, August might be the time to get the most out of the bank’s dividend yield.

Though, it’s not wise to assume all expert predictions will prove fruitful and that NAB will follow its previous trends.

In addition, all dividends that the bank has handed to its shareholders since 2007 have been 100% franked.

That means some Australian investors can use the bank’s dividends to reduce the amount of tax they pay.

So far, so good. At this point, NAB shares look like they could be a good August buy.

But how does the bank’s dividend compare to its competitors?

Big four dividends

For comparison, the Commonwealth Bank of Australia (ASX: CBA) offers the smallest dividend yield of all the big 4 banks. Its dividend yield is 2.44%. Additionally, the CBA dividend has historically been less consistent than that of NAB.

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) boasts the largest dividend yield of the big 4 – its dividends are worth 3.72% of its share price.

Westpac Banking Corp (ASX: WBC) is only doing slightly better than NAB, with a dividend yield of 3.56%.

Foolish takeaway

All in all, while the NAB dividend is strong, and it has been for many years, it currently isn’t quite as strong as those of some other big banks.

Though, August is as good a time as any to buy the bank’s shares for its dividends. Especially given its share price is predicted to increase.

However, all investments must consider an investor’s individual circumstances and goals.

The post Should you buy NAB (ASX:NAB) shares in August 2021 for the dividend yield? appeared first on The Motley Fool Australia.

More reading

• Leading broker names 3 of the best ASX shares to buy in August
• Westpac (ASX:WBC) share price struggles amid surging customer refunds
• Top brokers name 3 ASX shares to sell today
• Square might crash the Afterpay (ASX:APT) and Westpac partnership
• What is the outlook for the Westpac (ASX:WBC) share price?

Motley Fool contributor Brooke Cooper 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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Reporting season is really underway now and some ASX dividend shares have been reporting growth.

FY21 has seen a lot of disruption for plenty of ASX shares because of COVID-19 and the associated impacts.

These two businesses reported a lot of growth in FY21:

Nick Scali Limited (ASX: NCK)

This business sells high-end furniture to Australian and New Zealand households.

Coming into reporting season, Nick Scali was rated as a buy by the broker Citi.

In FY21, Nick Scali reported that sales revenue increased by 42.1% to $373 million. Underlying earnings before interest and tax (EBIT) grew by 100.5% to $121.9 million and underlying net profit after tax (NPAT) grew by 100% to $84.2 million.

There were some areas of the business that grew revenue quickly. New Zealand written sales orders grew by 95% and total online written sales grew by 510% to $18.3 million. The online EBIT was $8.8 million.

Nick Scali’s final dividend was increased by 11.1% to 25 cents per share. That brought the full year dividend to 65 cents per share, representing a payout ratio of 63%.

That means that the FY21 grossed-up dividend yield is 7.5%. But the ASX dividend share’s FY22 yield may not be as high.

Nick Scali also noted that July 2021 trading was impacted by lockdowns. Written sales orders were down 27% compared to July 2020, but 24% up on July 2019. Online growth was up 88% for the month of July 2021.

Nick Scali said that the company’s future growth will be primarily be driven by the continuation of the store rollout and increasing online penetration.

Centuria Industrial REIT (ASX: CIP)

This is a business which owns a portfolio of “high-quality” industrial assets which are situated in key metropolitan locations throughout Australia and is underpinned by a diverse tenant base.

Coming into reporting season, the real estate investment trust (REIT) was rated as a buy by the broker Morgan Stanley.

It bought a number properties during FY21 and the valuation of many of its properties increased over the year. It saw a total $587 million valuation increase. This helped increase the net tangible assets (NTA) per unit by 36% to $3.83.

The ASX dividend share’s portfolio has a 96.9% occupancy rate with a 9.6 year weighted average lease expiry.

Centuria Industrial REIT is expecting a slight increase of both the distribution and the funds from operations (FFO) per unit in FY22. It’s expecting FFO per unit of no less than 18.1 cents and a distribution per unit of 17.3 cents per unit. That translates to a future yield of approximately 4.4%.

The post 2 leading ASX dividend shares that just reported more growth in FY21 appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, Nick Scali falls, Pinnacle jumps
• Why Emerge Gaming, Imugene, Mesoblast, & Nick Scali shares are dropping
• Nick Scali (ASX:NCK) share price up 5% to record high on FY 2021 results
• 2 ASX dividend shares that could be buys with yields above 5%
• 2 ASX dividend shares with BIG dividend yields

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 Bruce Jackson.

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ASX 200 iron ore majors, BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) are raking in cash thanks to sky-high iron ore prices.

Rio Tinto has been the earliest to report its 1H21 results, revealing a 156% jump in underlying earnings to US$12.2 billion.

But looking beyond iron ore, there is a dominant theme of investing in the production of climate change focused materials.

ASX 200 mining giants, more than just iron ore

On 27 July, Rio Tinto said it will spend $2.4 billion building a lithium-borates mine in Serbia.

According to the company’s half-year results, construction for the major project is expected to commence in 2022, subject to the award of final permits and approvals.

If things go to plan, Rio Tinto could be making its first saleable production by 2026.

From there, the company aims to ramp up production to ~58,000 tonnes of battery-grade lithium carbonate, alongside 160,000 tonnes of boric acid and 255,000 tonnes of sodium sulphate per annum.

Rio Tinto believes that this will position the company as a top-10 lithium producer globally and potentially the largest source of lithium supply in Europe for the next 15 years.

Fortescue on the other hand has shifted its attention to green hydrogen.

More recently, Fortescue entered into a framework agreement to explore opportunities to develop a green hydrogen project in India.

A broader objective for Fortescue Future Industries, the renewable green energy arm of Fortescue, is to “produce 15 million tonnes per annum of green hydrogen by 2030”.

Finally, the largest of all ASX 200 miners, BHP could be making a move away from oil and gas, with speculation that Woodside Petroleum Limited (ASX: WPL) might be the one to buy the prized assets.

In addition, BHP has invested US$2,972 million into the development of a potash project in Canada.

Potash is widely used as a plant fertiliser, allowing plants to become more drought resistant. Which could play into the environmental theme, especially in areas where rainwater is scarce.

The post 3 ASX 200 mining giants making moves towards renewables appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) big dividend payday might even exceed expectations
• Fortescue (ASX:FMG) share price falls on COVID-19 scare
• Why the Fortescue (ASX:FMG) share price is struggling this week
• 4 reasons why the Fortescue (ASX:FMG) share price could still be attractive
• Why the BHP (ASX:BHP) share price is up 2.5% and nearing a record 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 ResMed Inc (ASX: RMD) share price will be one to watch this morning.

This follows the release of the sleep treatment focused medical device company’s full year results.

ResMed share price on watch after beating expectations

• Revenue increased 8% to US$3.2 billion
• Non-GAAP operating profit up 12% to US$993.8 million
• Non-GAAP net income rose 13% to US$780.6 million
• Earnings per share increased 12% to US$5.33

What happened in FY21 for ResMed?

ResMed was a positive performer in the fourth quarter, outperforming the market’s expectations for both revenue and earnings per share. This could bode well for the ResMed share price today.

Pleasingly, it was the same story for the whole of FY 2021, with ResMed delivering solid revenue and profit growth despite cycling a period boosted by COVID-19 ventilator sales.

The company notes that it derived incremental respiratory care revenue from COVID-19 related demand of approximately US$20 million in the fourth quarter. This compares to US$125 million in the prior corresponding period.

ResMed was able to offset this with strong sales from its core business thanks to a recovery in its sleep apnoea and COPD patient flow. This was boosted by a major quality issue from one of its leading competitors.

This led to full year Global Device sales rising 7% to US$1,610 million, Mask sales increasing 11% to US$1,213.2 million, and Software as a Service sales growing 5% to US$373.6 million. Growth was delivered both in the United States market and internationally.

What did management say?

ResMed’s CEO, Mick Farrell, was pleased with the company’s strong finish to the year.

He commented: “Our fourth quarter and full-year fiscal year 2021 results continue to demonstrate the strength and resiliency of our business. During the quarter, we saw the ongoing recovery of core sleep apnea and COPD patient flow across our business, as healthcare systems continue to adopt new models of patient care. We faced some headwinds this quarter, as we annualized the $125 million in COVID-related ventilator sales from this period in 2020, and we saw some tailwinds from a competitor’s major quality issue that was announced during the quarter.

“At this time of incredible demand for ResMed products, we are doing everything we can to increase our manufacturing of sleep and respiratory care devices. Our global team is supporting patients, providers, and physicians with our priority to get products directly into the hands of patients who need therapy most.”

What’s next for ResMed?

While no guidance was given for the year ahead, management spoke positively about its prospects in FY 2022.

Mr Farrell explained: “Looking ahead, we are confident in our ability to grow steadily through our fiscal year 2022 and to deliver for all our stakeholders. We’re driving accelerated adoption of digital health solutions in sleep apnea, COPD, and out-of-hospital care, accelerating our ResMed 2025 strategy. These digital health solutions provide efficiency and lower costs for providers and payers, as well as better quality-of-life and clinical outcomes for patients and physicians, and sustainable growth for all of our ResMed stakeholders.”

The ResMed share price is up 35% since the start of the year.

The post ResMed (ASX:RMD) share price on watch after beating expectations in FY21 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 recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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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COVID-19 continues to cause disruptions and difficulties. There are some ASX shares that are seeing increased demand for their products or services.

There are some businesses that are still being impacted, such as travel ASX shares such as Qantas Airways Limited (ASX: QAN), Sydney Airport Holdings Pty Ltd (ASX: SYD) and Flight Centre Travel Group Ltd (ASX: FLT).

But then there are ASX shares like the below ones that are seeing stronger demand because of the global COVID-19 outbreaks:

Ansell Limited (ASX: ANN)

Ansell is a business that makes a variety of safety gear such as quality protective gloves and protective suits.

It has a global customer base, with customers in more than 100 countries.

A few months ago at the end of April 2021, before the Delta COVID variant was as prevalent as it is now, Ansell said that it was still seeing elevated demand for protective equipment around the world and that the financial performance since January 2021 had been stronger than expected.

The ASX share has also been working on expanding its capacity so that it can meet the stronger demand.

Ansell has experienced increases in raw material and outsourced supplier costs, but it has managed to pass on price increases to customers even better than it was expecting.

The company has been effective at still supplying customers with products despite the tightness of raw material supply and disruptions to ocean freight.

Ansell is likely to soon give an update during reporting season about how things are currently going.

In April, Ansell provided guidance that it expected its FY21 second half sales growth to be “strong” despite the solid performance in the prior corresponding and above the 24.5% growth reported in the first half of FY21.

The ASX share has given earnings per share (EPS) guidance of US$1.92 to US$2.02 for FY21.

Sonic Healthcare Ltd (ASX: SHL)

Sonic is one of the largest ASX healthcare shares.

It has operations in a number of countries including New Zealand, Belgium, Switzerland, the UK, Ireland, Australia, Germany and the USA.

Sonic continues to play an important role in the fight against COVID-19. It has been doing millions of PCR tests at around 60 Sonic laboratories around the world.

The business is experiencing a significant revenue and earnings contribution from this COVID-19 testing, with it leveraging existing infrastructure. That’s how half-year revenue was able to grow by 33% by and net profit soared 166% to $678 million.

Sonic decided to only implement a modest 6% increase in its interim dividend. Management are looking to utilise the cash it has generated to acquire other businesses to lock-in an increase in earnings. For example, it recently bought Canberra Imaging Group which has annual revenue of around $60 million.

Sonic is looking at other opportunities in multiple countries such as Australia, the UK, the USA and Canada. It also said that its pre-COVID business is becoming increasingly resilient to the pandemic.

The post 2 COVID-19 ASX shares that could be buys appeared first on The Motley Fool Australia.

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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 recommended Ansell Ltd., Flight Centre Travel Group Limited, and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.1% to 7,511.1 points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 futures pointing slightly higher

The Australian share market could end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points higher this morning. This follows a very strong night on Wall Street, which saw the Dow Jones rise 0.8%, the S&P 500 climb 0.6%, and the Nasdaq storm 0.8% higher.

REA Group FY 2021 results

All eyes will be on the REA Group Limited (ASX: REA) share price this morning when it releases its FY 2021 results. According to a note out of Goldman Sachs, its analysts expect a 12% increase in revenue to $915 million and a 20% jump in EBITDA to $571 million. The latter is ahead of the market consensus estimate of $560 million. On the bottom line, a 27% increase in net profit after tax to $343 million is expected. Goldman has a buy rating and $198.00 price target on the company’s shares.

Oil prices rise

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could end the week on a solid note after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.6% to US$69.22 a barrel and the Brent crude oil price is up 1.4% to US$71.36 a barrel. Oil prices rose amid tensions in the Middle East.

ResMed Q4 update

The ResMed Inc (ASX: RMD) share price will be one to watch today following the release of its fourth quarter and full year update. The sleep treatment focused medical device company has reported an 8% increase in full year to US$3.2 billion and a 13% jump in non-GAAP net income to US$780.6 million.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.4% to US$1,806.70 an ounce. Traders were selling gold amid concerns that the US Fed could begin tapering its asset purchases later this year.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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